Petrol pumps defer decision to not accept card payments
Petrol pumps on Sunday night deferred their decision not to accept credit and debit cards for fuel purchase till January 13. The petrol dealers had announced earlier that starting midnight, they would not accept the debit and credit cards of banks that would levy the extra charge.
“We have received official communication from oil marketing companies that the transaction fee charges have been deferred till January 13, 2017. AIPDA also has decided to defer the agitation till January 13,” said Ajay Bansal, President, All India Petroleum Dealers Association (AIPDA).
The government had waived the Merchant Discount Rate (MDR) on fuel purchase post demonetisation for consumers to promote cashless economy. But after the expiry of the 50-day window, the banks decided to levy MDR on petrol pump owners, making petrol pumps bear 1 per cent on all credit card transactions and between 0.25 per cent and 1 per cent on all debit card transactions from January 9.
The pumps have been notified that 1% charge will be levied on all credit card transactions and between 0.25% and 1% on all debit card transactions from January 9, 2017.
“In view of the debit of MDR of 1% it has been decided to stop accepting payment through Credit/Debit Cards from 9th January 2017,” Ajay Bansal, President of All India Petroleum Dealers Association, had said in a statement.
In their letter to Mr Jaitley, the All India Petroleum Dealers’ Association said since there has been no word of passing the charge to consumers, the dealers will sustain a loss.