credit card mistakes and how to avoid
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#sh. Jayaraman Raju question was not about the charge but why should the credit card company charge anything. You are correct that they do not ask for interest but the charge is expected to cover the interest on loan given indirectly to the parchaser. more
Feb 03
I think that there is a mix up relating to levy to the vendor and levy to the card holder; if the bank is charging the vendor as a payment towards the interest charge on the delay on reimbursement of the amount of purchase made, by the customer, then it is a hidden charge from the point of view of the customer- and is unlawful; here the point under discussion is the levy charged to the vendor/shop keeper; that is only a service charge and not an interest for delayed payment by the customer; for this same reason, many small establishments refuse to accept credit card and putting the customers to great difficulty; even the sagar hospital@ banashankari, informed us that if we want to pay the hospital bill ( Rs 75000) by credit card then we hv to pay an additional 2.5% of the sum towards the bank charges; we paid the additional charge; the govt policies speak of something else but the govt actions are something else;;;; the govt wants to please the bankers and the banking public at the same time; and in the process draw the benefits from both the sectors; it is like the fable of two cats fighting over a pancake and the monkey takes whole of it, in the guise of settling the issue between the fighting cats;;;;;; more
Feb 03
Dear saxena, indirectly drove home the point validated by Mr.Jayaraman Raju. By credit cards it is a big business to banks & the vendors, hence the suggestion to stop this levy. more
Feb 03
#Sh. Jayaraman Raju The credit card company is supposed to credit the seller immediately but they collect the payment from the purchaser after several days. This levy is the interest on loan to the purchaser during this period (plus a lot more, of course.) If you pay in full on the due date, purchaser does not pay any interest. more
Feb 03
Interesting point to be noted is that when Credit Card was introduced in India the banks hailed the importance of the use of cards and in favour of introduction of the cards, inter alia, one point was highlighted, that the cards obviate the use of paper currency and since printing currency notes is expensive, the govt/RBI would save a lot in printing cost as the use of currency notes is expected to go down considerably; if that was one of the objectives, then why are the banks charging the vendor any levy? basically the transaction is a fund transfer and keeping in mind the objective of discouraging use of currency notes, the transaction should not attract any charges; Probably the forum should take it up with the banks thru the finance ministry; come on let us take it forward!!! more
Feb 03
