Petrol pumps postpones their decision of cardless payments
Source :News Bharati English   Date :09-Jan-2017

New Delhi, January 9: On Sunday night petrol pumps postponed their decision to not accept the debit and credit cards for fuel purchase till 13th January. Earlier after announcing demonetization the government announced 0.75% rebate on fuel if purchased through cards but from tomorrow as banks decided to put transaction charges on petrol pumps instead of consumers, the petrol pumps postponed their decision to not accept card payments.Ajay Bansal, President of All India Petroleum Dealers Association AIPDA, said that “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. 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.”

Bansal added that the decision to stop accepting debit and credit cards had been conveyed to Petroleum Ministry and Finance Ministry officials. As banks are about to charge 1% on debit and credit card transactions Petrol pumps won’t accept the plastic money to protest the decision of banks.

President of Association, K P Murali said “"we have suddenly received intimation from the bankers, reneging on their existing agreements with us, and for having decided to levy a Merchant Discount Rate (MDR) of 1% plus taxes on all transactions done at our outlets. This move was a 'unilateral' one by bankers, who had installed card swipe machines at the fuel outlets.”

"We have specific mechanisms to compute the margin and these do not have any scope for Credit/Debit card MDR. This will lead to financial losses for the dealers," Murali added.

ICICI bank said that “We are not charging any transaction fee on card payment from tomorrow.”