NEW DELHI: If you looking to make payment at fuel station, beware as petrol pumps across the country will not accept credit and debit card payments for fuel sales from Monday after banks decided to put transaction charges on them instead of consumers.
To promote cash-less transactions, the government had waived the Merchant Discount Rate (MDR) on fuel purchase post demonetisation for consumers. But after the expiry of the 50-day window, the banks have decided to levy MDR on petrol pump owners.
Petrol pump owners association said they have been “informed by HDFC Bank that we will be charged one percent on all credit card transactions and between 0.25 percent and one percent on all debit card transactions from Monday (January 9, 2017). The same will be debited to our account and net transaction value will be credited to our account”. Ajay Bansal, president, All India Petroleum Dealers Association, said the bank has quoted the Reserve Bank of India (RBI) circular of December 16, 2016, for its action.
“Unfortunately, the circular has no reference to credit card charges or for not passing the same to the customers. We feel that HDFC Bank is using this as an excuse to improve their bottom line through transactions at fuel stations,” he said.
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