Update as on 10 March 2017: Paytm removes the 2% fee on credit card payments. Commits back to offering credit card options for wallet deposits without charges.
We are suspending 2% charge on credit cards for adding money to wallet keeping users’ convenience in mind.
This actually turns out to be a helpful move for consumers who use primarily for payments at various merchant points, offline, and for payments like Uber cabs or Swiggy. The charges imposed might be returned as 2% as a instant discount voucher, but turns out the voucher can be used only on Paytm website and Paytm mobile apps. This is without doubt a cumbersome choice for most users.
In a recent post on Twitter, Paytm announced that the company will be charging 2% as transaction fee for money added to Paytm wallet using credit cards. While this might come as a shocker to users, Paytm has a valid reason as on why this checkpoint is enabled and also claims that the 2% charge will be refunded to the user though after 24 hours as a discount voucher.
Back in November and December when Paytm announced 0% charges for money transfers to bank accounts, recent claims from Paytm have indulged in misusing this feature: users have loaded money from the credit card accounts to Paytm wallet and transferred it back to their bank accounts free of cost.
This brings into effect:
- Freeloading of Paytm service benefits in mass values. Credit card companies charge Paytm for operating services. This results in loss to the company.
- Claiming free credit (credit card money) without interest. Credit account money is meant to be consumed for shopping transactions by ethics.
While it might look at a rough path down the road for consumers, Paytm promises that the service remains unaffected with them giving back the 2% charge value as a discount voucher.
The discount voucher can be used for future transactions. It is still unclear as to when the voucher will be limited to use on Paytm website and apps, or valid across all partner websites. Stay tuned here for an update on this.
The discount voucher will be offered only for transactions from credit card for a minimum of Rs 250. Deposits to Paytm wallet for lesser value with credit cards will be charged 2%, but there won’t be a discount voucher equal to it.
Important updates: The discount voucher issued will be valid only on Paytm website and apps, not on partner sites. It will be valid for a one-time redemption. It will be valid until Dec 31, 2017.
Credit card can be used for shopping at no cost though
While the 2% charge applies only to Paytm wallet money deposit transactions, Paytm will not be charging users for using credit cards for utilities payments or partner payments transactions. One can always continue using Paytm wallet at no cost.
The 2% charges fee (for wallet money addition) is effective March 8, 2017!