Paytm will charge 2% fee on using credit cards to recharge wallet
money
By Team Asianet Newsable | 02:28 PM Thursday, 09 March 2017
  • Last year in November, Paytm had introduced 0% platform fee. 
  • Some credit card users had started misusing the 0-fee on transfers.
  • Paytm is now making changes to stop the misuse. 

"There will be no fee when you shop on Paytm or pay for any utilities using your Credit Card or any other payment option but to avoid the misuse highlighted above, we will put 2% fee (inclusive of taxes) only on adding money to wallet using credit cards while adding money using any other payment option remains free," Paytm writes in a blogpost.

Paytm has said that it pays a hefty sum to credit card networks and issuing banks when you use credit card. And, some users had started misusing the 0-fee that the company introduced with credit cards last year in November.

 

"Some financially savvy users (surprisingly many of them employees of national financial institutions) exploited this model to rotate money. This may surprise normal users like most of us but for a savvy user it meant freebies at Paytm’s cost," Paytm writes.

 

So, there will be no fee if you shop on Paytm or pay for utilities using credit card or any other option, but a 2 percent fee will be levied only when adding money to the wallet using a credit card. The blogpost further adds that this 2 percent fee would be reversed in the form of a discount coupon for same amount that will be issued within 24 hours. 

 

"This hopefully keeps unintended misuse of our platform away and as a consumer you still enjoy our services at no extra cost," Paytm said. 

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