Hi all,
This is regarding credit card. Some shop keepers demand 2% extra amout when I am
using my credit card to pay.
Regarding this I called the bank customer care and they irresponsibly replied
that to go to another shop.
What could be done in this regard.
Give suggestions.
Thanking you,

This has become a regular practice of all shopkeepers who have to sell material
in the competitive world where prices are less then MRP.The shopkeepers have
unilaterally imposed 2-2.5 % charges for buying through credit card and even
display boldly in the shop.

customer is helpless in this regard and has to pay more for convenience. It
beats the purpose of paying through credit card. Banks & credit card agencies
are not opposing this as it is not going from their pocket.
Shopkeepers says that they have sell at discounted prices and onthe other hand
customer get 5 % cash back on every purchase.

Regards

Siddhartha Mathur

Its very Simple.

Bank is charging 2% to Shopkeeper, but against that, When Customer is paying by
Credit Card, He is simply getting Credit Period, whereas Ban is Making Payment
to the Shopkeeper within 2 to 3 Days.

Nobody is going to oppose and nobody has got time to oppose and fight.

In India as I Have Seen they tell something and they reject after
some time because we don't have strog Law here. The Law which we got
have more Loop holes, Because The banks Can Higher good Lawers and
They can Spend money to get the Judgement to their Side.

thats true.. some shopkeeper charges 2% extra, and bank most of the time doesnot
do this, they just reply that charging extra is against the Master and Visa
norms but dont take any action against such merchants.

hi,
there are certain banks, where they give their machines to dealers and they dont
collect Rent instead they charge 1.75%-2.25% + SC.

For Example i am a computer dealer,
and a customer comes to me and wants to take a laptop on his credit card, and if
i dont have a machine i loose a sale. and if i say i have a machine but i will
charge 2.5% extra, so he may or may not show interest. coz if the laptop worth
is 20000 and you pay 500 to bank for the transaction and you earn nothing out of
it, and if a customer is ready to pay 500, so it is benefited for you, and the
charges are on the volume of bussiness what the dealer gives to the bank.

yes in the cases like MALLS, and FMCG based goods there is no charges, on
purchasing cassettes or cds there are no charges, but these purely based out of
which outlet are you purchasing. if it is a well known so no charge, and if it
is not so well known, to provide facility only these people take charge.

i have also expereienced this in the recent times THE MOBILE STORES, Essar
Group, i have taken a mobile worth 20k and i was charged 2%, when i denied to
pay so the store person asked me to pay in cash, now at a stance where is it
possible to pay 20K.

regards
vimal jain

Well actually it defeats the purpose of keeping credit card, if you have to pay
some percentage extra for usage. Though the card issuing bank say that charging
extra for card usage is against the agreemnt with the Master/Visa but they dont
take the action against the merchant either.

It all depends on the Margins. If 1-3 % is nominal compared to good margins then
storekeeper does not mind.

However for some stores, paying extra to bank, irrespective of good margins
pinches and hence they charge.

Hence there is no fixed rule which store does and which products. Anything can
change anytime. Laws are always existing. Important is enforcement where India
is weak.

I've spoken to many people - consumers / merchants and banks, and
this is what I've concluded:

1 - A merchant CANNOT charge addl. 2% on usage of credit cards
2 - However, #1 is applicable ONLY IF the product sold is on MRP.

Typically when we by mobile phones, we negotiate and get a price
lesser than the mrp. In this case the merchant can charge 2% addl.

Hope this helps.