Dear Sir/ Madam,

This is regarding a 'Service Fee/ Surcharge' levied by Merchant Establishments to Credit Cardholders. At many Merchant Establishments, when we make purchase on our Credit Card, they charge additional 1.5% to 3% towards surcharge/ transaction fee. The reason: The Bank pays the amount to Merchant
Establishment after deducting certain percentage from the Purchase Amount. I have asked for the proof many times to these Merchant Establishments. But not a single ME showed me a proof. They even don't show a letter from Issuing Bank, which authorises them to charge Transaction Fee on Credit Card payments. I am referring to MEs of various sectors right from Automobile garages to Restaurants
to Chemists to Departmental stores etc.etc. Is it not a right of a Consumer to know, For what purpose & at what specified/ official rate, he is paying transaction fee?
Now the question is Why these banks do not clearly specify/declare a particular percentage/ transaction fee to be paid to Merchant Establishment on Purchase Amount? This is because MEs charge anything between 1.5% and 3% on Purchase. Why the consumer should reimburse/ pay the transaction fee to Merchant Establishment? On one hand we pay, as much as Rs.2500/- to Credit Card companies, towards Annual Fee. In return we get an interest-free period of 15-45 days. On other hand, we pay 1.5% - 3% transaction fee to Merchant Establishments. In the given case, bank is not a looser, as it gets certain percentage of amount, every time we make purchase. Merchant Establishment recovers this transaction fee from consumer at his own unofficial rate. So ultimate looser is consumer who most of the time pays additional 1.5% -3% for an interest-free (???) period of 15 days.
Thanks & regards,