Banks Extended The Relief On Card Transaction Charges In Petrol Pumps Till Friday

Petrol pump are in protest mode till January 13 and have denied to accept the debit and credit card payments for fuel filling as banks started levying transactions on card based sales. Initially, to foster the cashless transactions, government had given relief on the Merchant Discount Rate (MDR) regarding all fuel purchase after the decision of demonetisation. But, the end of 50 day window came more as a melancholy for the petrol pump owners than a relief with a levy of MDR on all petrol pump transactions.

This decision will make the petrol pumps bear 1 percent on all transactions from credit card and from 0.25 to 1 percent on all transactions on debit card from January 9. Resultantly, all the petrol pumps have followed this decision of not accepting card payments from now onwards.

Ajay Bansal, All India Petroleum Dealers Association President mentioned that there was official intimation from oil marketing companies that the transaction charges have been delayed till January 13, 2017. Following this, the association had decided to delay the charges till 13th of January.

Till Friday, consumers had a relief because banks had deferred the decision of levying charges on the card transactions.

All transactions were free from such levy till two major private banks, Axis bank and HDFC Bank departed a notice asking for MDR (merchant discount rates) between the range of 0.25 per cent to 1 per cent which was said to be effective from January 9.

Ajay Bansal mentioned on this matter that, “If they start charging us, it will be difficult for us to bear the cost… We are with the government to go cashless, but our hands have been forced in this matter by banks and the RBI.”

Following the ban of high denomination notes, banks have plan to maximize their benefits on card transactions which will give birth to unviable conditions for petrol pumps.