Reasonable credit card charges
The credit card issuers recover 2-3% of the sale value from Merchants/Vendors as fees. No doubt, it is quietly passed on to the consumers and recovered by adding to the cost of items. While reasonable fee of say half to one percent is required to be recovered by Fuel Stations, considering the present rates of interest and expected ROI, the hefty charges should be drastically reduced so as not to discourage use of credit cards.
Debit card issuers also charge fees just for the service which is done on-line and involves no significant cost. Here, the fee should be as low as 0.25% or so. Similar service by drawing cash from ATM is free, which involves providing of cash adding to the cost and hassle to the banks and customers. Hence, if not a free service to the merchants/vendors similar to ATM withdrawals, the fee from vendors should be bare minimum as stated. This would not lead to added cost of goods as in the case of Credit card.
These principles should apply to other cards like RUPAY also to encourage cashless transactions.
Now that the Govt. wants to promote digital payments, the fee for use of credit, debit and prepaid cards should be regulated by RBI on a practical and consumer-oriented manner, to promote digital payments. more
Debit card issuers also charge fees just for the service which is done on-line and involves no significant cost. Here, the fee should be as low as 0.25% or so. Similar service by drawing cash from ATM is free, which involves providing of cash adding to the cost and hassle to the banks and customers. Hence, if not a free service to the merchants/vendors similar to ATM withdrawals, the fee from vendors should be bare minimum as stated. This would not lead to added cost of goods as in the case of Credit card.
These principles should apply to other cards like RUPAY also to encourage cashless transactions.
Now that the Govt. wants to promote digital payments, the fee for use of credit, debit and prepaid cards should be regulated by RBI on a practical and consumer-oriented manner, to promote digital payments. more
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No charges to be levied for Debit & Credit card transactions to either the user or the receiver. Then only cashless would be encouraged. more
Jan 21
I totally agree on this issue for 0.25 % charges on credit / debit cards use to encourage cashless transaction more
Jan 13
Looting public money with White Coat. Nobody is going dip to the problem and give a resolution suitable to public. Finding innovative ways to looting public. more
Jan 10
With the Prime Minister advocating cash less economy for growth and transparency its necessary that all banks and institutions immediately stop putting a charge on the use of all card transactions(Credit/Debit cards etc). Why are banks and companies trying to defeat the Prime Minister and Finance Minister order of zero charges for the use of the above??? more
Jan 09
The money lending act prohibits any interest above 18% per annum. I have not yet understood how the RBI and finance ministry is allowing Credit card companies and banks carry on this high rate of interest which will work out to around 36 to 40% per annum, with impunity. more
Jan 08
