Petrol pumps won't accept Debit/Credit cards from tonight
Banks on Saturday referred to a Reserve Bank of India notification of December 16 and announced an MDR varies between 0.25 and 1 per cent will be deducted for each debit card transaction
The petrol pumps across the country will not accept debit and credit cards for filling fuel from Sunday midnight as banks will start debiting a Merchant Discount Rate of 1 per cent from petroleum dealers, said President of All India Petroleum Dealers Association Ajay Bansal.
Mr Bansal, who was speaking to reporters after a two-day convention of petroleum dealers in Mangaluru, said each petroleum dealer was operating at a tiny profit margin of 2 per cent.
Banks on Saturday referred to a Reserve Bank of India notification of December 16 and announced an MDR varies between 0.25 and 1 per cent will be deducted for each debit card transaction. For credit card transaction, an MDR of 1 per cent will be deducted.
“We are operating on a very thin margin. We cannot afford this deduction. Hence we have no other go than stop accepting debit and credit cards,” Mr. Bansal told reporters. When pointed that the decision was against government directives, Mr Bansal added that they have no other option.
He said the decision had been conveyed to the Petroleum Ministry and Finance Ministry officials.
However, the payments through Paytm and Bhim apps are still valid, Mr Bansal said. “But we have to stop accepting Paytm if they impose charge for each transaction,” he added.
As of now, nearly 28,000 petrol bunks across the country accept Paytm transactions.
He said the petroleum dealers are in favour of the government's decision to go cashless in transactions. “But we cannot afford to pay from our margin. We want our profit margin (of 2 per cent) intact,” Mr Bansal said.