2% charges on debit card swipe. RBI Rules

Folks ,

yesterday i had been to a shop to purchase clothes for me .

the bill was around 1000 INR and shopkeeper asked for mode of payment .

the moment i said “card”, he said there will be 2% charges extra on the bill .

i asked “why” and he replied because banks will charge us for this .

I tried to tell him that you are not supposed to charge customers for whatever additional charges YOU have to pay to bank.

he kept arguing . he said this rule is not yet implemented.

i showed him the RBI rule , but still he was not convinced . i told him this time i will pay by cash , but next if i visit your shop and pay by card , and if you charge me extra for nothing, i will not keep quite .

OK here is the thing. banks and merchants have mutual contract for using swipe machines and charges should not be levied on customers.my bill amount was less but think about someone who makes a purchase of 50k or higher for any product.. that’s unfair practice

below is the rule. read it carefully

. Levying fees on debit card transactions by merchants – There are instances where merchant establishments levy fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards. Such fee are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments.

5. Though many banks have appreciated our concerns and have discontinued with the above mentioned practices/ products, some of them still seem to persist with them. These practices/ products thwart the very principle of fair and transparent pricing of products which beholds customer rights and customer protection, especially, in the more vulnerable retail segment. Such practices thus violate, both in letter and spirit, various provisions of our MC on Interest Rate on Advances and therefore, you are advised to strictly desist from these practices hence forth.

have you come across any such instances ??  comment me back on comment section

Author: theonlysup

Self Motivated. Optimistic , Resilient . Sometimes emotional, most of the Time Happy :)

22 thoughts on “2% charges on debit card swipe. RBI Rules”

  1. Happens all the time! Especially electronic shops. Just a question: What do we do in such cases? Apart from going to bigger shops/chain shops.

    1. Nothing . you can convince the shopkeeper. Or give him cash or tell him you will complain to banking ombudsman and consumer complaints forum or leave the shop and go to another..

  2. I think now most swipe machines charge 0.75 % for every transaction done so that means the merchant gets 0.75% less from total bill. Some of the merchants pass it on to the customer, some don’t. The government is levying charges for everything, money put, money withdrawal, cards used, extra cheque book. Everything digital is also charged. It’s a terrible system no transparency

    1. im not sure about the charges being reduced to 0.75 , but yeah terrible because of the additional charges , dont you think digital payments are way more transparent than cash system ?

      1. No, there are too many hidden charges… My bank seems to be cutting money from my account for every service it provides.. I know 0.75 because at my friend’s hospital, v have installed swipe from sbi which charges only 0.75

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