New Delhi, March 10: We are suspending 2% charge on credit cards for adding money to wallet, keeping users’ convenience in mind, said Paytm on his official press release. The company had introduced the fee after finding multiple users using its platform to get free credit by using credit cards to top up their mobile wallets and then transferring the money back to their bank accounts at zero transaction cost.Earlier in a statement Paytm told, this was being done to combat misuse of its zero-fee transfers, explaining that savvy users were rotating their cash through the wallet to earn essentially "free" money in the form of reward points. Paytm founder Vijay Shekhar Sharma clarified that the coupons can also be used on third-party sites to pay Swiggy or Uber, although this mechanism has not been activated yet.
Since November Paytm has been allowing users to take cash out of the wallet to their bank accounts at no charge. Paytm and other wallets haven't charged fees for depositing cash into their systems. This meant that credit card users could fill up their Paytm wallets using the card, and then transfer that money back to their bank accounts, at no charge.
There are a couple of other caveats listed on the FAQ page. For one, these refund coupons will only be given when the amount you're filling up is more than Rs. 250. If your transaction is lower than that, you will not get a coupon. Also, these coupons can only be used in a single transaction. Also, the coupon isn't applied as a discount on the transaction it gives you an instant cashback to your Paytm wallet.