At Petrol Pumps, No Extra Charge For Card Payments, Says Government
There will be no extra charge for card transactions at petrol pumps, the
government decided today after petrol pump owners threatened to stop
According to the minister, banks and oil firms are discussing who will bear
the extra cost charged by banks on card payments for fuel.
January 13 their move to stop all credit and debit card transactions.
To promote cashless transactions after the notes ban on November 8, the
government had waived the Merchant Discount Rate on fuel. But after the
50-day period that the government gave for the cash crunch to ease ended,
the banks decided to resume the fuel surcharge.
This meant petrol pumps would have to pay one per cent on all credit card
transactions and between 0.25 per cent and 1 per cent on all debit card
Besides causing discontent, the move was seen as a big potential setback
for the government’s efforts to push cashless transactions after the
scrapping of Rs. 500 and 1,000 notes, which wiped out 86 per cent of the
cash in circulation.