New Delhi, January 8: Monday will definitely start with 'blues' for people using two-wheelers or four-wheelers for commuting as the petrol pumps have decided not to accept payments through credit, debit cards after the banks levied 1 per cent charge for every sale.
The President of All India Petroleum Dealers Association, Ajay Bansal, in a statement said, "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."
As the petrol pumps will no longer accept the plastic money, it will cause inconvenience to people in times of cash shortage. ICICI Bank, HDFC Bank and Axis Bank sent notices to dealers on Saturday night to inform them about the surcharge.
According to reports, ICICI Bank and HDFC Bank account for some 60% of card swipe machines deployed at 52,000 petrol pumps out of the 53,842 public sector fuel retail outlets. Notably, the government had announced .75 per cent discount for people who purchase fuel through a card.
Bansal said that hey could not bear the additional charges levied by the banks. “Our margins are fixed on a per KL basis and do not have any scope to absorb these charges. We have specific mechanisms to compute the margin and these do not have any scope for credit card MDR. This will lead to financial loses for the dealers,” he said.
He further alleged that the banks push the settlement of dues. “To compound maters further these credit card machine issuers are delaying settlements and not settling the entire dues as per our settlements. There are disputes about purchases being returned or not delivered."
He mentioned, "In a Retail Outlet there is no scope for returns or not being delivered a product once you have paid for the same. The reconciliation of swipes to the amount being credited to our accounts is causing a lot of hardships and losses to a large percentage of the dealer community."