Paytm rolls back 2% fee for recharges via credit cards
Paytm on Thursday said it rolled back the 2% fee it had levied on customers and “will introduce new features to prevent credit card misuse in add money”.business Updated: Mar 10, 2017 11:53 IST
Digital wallet company Paytm rolled back the 2% fee it had levied on customers a day before for recharging the wallet using credit cards.
Paytm wrote in its official blog on Thursday that it “will introduce new features to prevent credit card misuse in add money”.
“With an intent to prevent the misuse of transfer to bank facility at 0%, we had applied a refundable fee of 2% on add-money through credit cards. At the same time, we are conscious that this move caused inconvenience to a large segment of our users, including those who are using their credit card for genuine transactions.”
“Keeping the millions of customers and merchants interest as utmost priority, we have decided to suspend the 2% fees and will continue to build a series of features to curb such misuse,” the post added.
In an earlier blog post on Wednesday, the e-wallet company had said: “Paytm pays fee to card networks or banks whenever you use any payment instrument like any other online commerce company. Paytm pays a hefty charges when you use your credit card to card networks & issuing banks. If user simply adds money and takes to bank, we lose money.”
Paytm said the facility was misused as users were using credit cards to recharge it and then would transfer the money back to the bank, earning loyalty points and free credit in the process.
The 2% fee was only for topping up the e-wallet via credit cards, not applicable to shopping on Paytm or paying bills via credit cards.
After demonetisation in November, Paytm had introduced zero percent platform fee to attract small merchants to accept payments from their wallet.
The digital wallet company has also added UPI enabled payment and Immediate Payment Service (IMPS) for instant fund transfer between banks using mobile phones. The Alibaba-backed platform has over 200 million wallet users and plans to create a network of 1 crore offline merchants.