With the Government stepping in, petrol pumps to accept cards

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Bank’s decision on levying the extra charges on both the credit & the debit card transactions brought forth protest of the petrol pumps dealers’ association decision that they would not be accepting either of the cards as charges shall be levied on them. However, with the government stepping in, the petrol dealers have decided for their protest on bank’s decision to be postponed till the 13th of January, 2017.

However, petrol dealers have earlier clearly stated that they would not be accepting payments made in either debit or credit cards & the reason being extra charges have been levied. Such a decision would be in effect from the mid – night of 9th January, 2017. As a solution, the Union Finance Minister, Arun Jaitley had been informed by petroleum dealers about the decision of banks on levying extra charges when credit & debit cards are put in to use.

Petroleum Minister’s statement

Dharmendra Pradhan, the Petroleum Minister, stated that any sort of surcharge should not be levied on consumers as well as retail outlet owners. And as such, the Government of India is advised that they talk to the bankers besides the oil marketing companies so that it is a win – win situation for all. On the other hand, the oil marketing company is going ahead giving subsidy as well.

The All India Petroleum Dealers’ Association Chief, Ajay Bansal added that they wish to be a part of India turning cashless besides digital but for that to happen, concerned authorities have to compensate them.

Cashless transactions on the rise

From the time demonetisation was announced, we could notice that there was a rise in the transactions made by credit or a debit card at petrol pumps & such a step further promoted or you may say escalated the issue of a cashless society. Furthermore, to encourage people, the Government of India had also waived off MDR or the Merchant Discount Rate for customers especially on the fuel which was purchased post the announcement of demonetisation.

Bank levied MDR

However, this decision on not levying MDR was valid till the end of 50 – day window which was till the 30th of December, 2017. With the end of 50 – day window, most of the banks have come forth with their decision of levying MDR on petrol pump owners. As an end result, dealers will have to bear the brunt as consumers have not been informed about these extra charges being levied.

Information about charges & petrol pumps decision to accept credit & debit cards

As a matter of fact, 1 % will be charged on credit card transaction whereas 0. 25 % to 1 % shall be charged on debit card transactions from the 9th of January, 2017. However, when the Indian Government stepped in, it became clear that this matter would be discussed further before any decision is taken.

Finally, till 13th of January, 2017, petrol pumps will be accepting both debit & credit cards for the transactions.

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