This Is Why Paytm Is Charging 2% Extra On Adding Money Via Credit Cards Into Wallet
Paytm has now started charging extra, for loading money via credit cards.
An additional 2% charge has been imposed by Paytm, for adding more than Rs 10,000 into your Paytm wallet, via Credit Cards.
What is the reason behind this?
Keep reading to find out more..
Why Paytm Is Charging 2% Extra For Using Credit Card
For knowing this, we need to go back a bit.
Way back in 2017, Paytm has expressed their concern and displeasure on the way their wallets were being misused, and exploited by credit card users.
Credit card users were adding money into their Paytm wallet, then transferring back into the saving/current bank account.
Now, most of the credit cards give 40-45 days zero interest period for their users, and this was the reason they added money into their wallet using credit card.
On the other hand, Paytm charges zero transaction fee from users, but they need to pay for every bank transaction, to the banks.
Paytm had said, “This disturbing trend of using credit cards to rotate cash affects our ability to serve our valuable customers”, adding, “If user simply adds money and takes to bank, we lose money.”
Paytm’s Punishment For Credit Card Users?
As a result, in 2017, Paytm imposed an additional fee of 2% for all credit card enabled money transfer into their wallet.
Note here, that when Paytm had imposed this extra charge, it was for all credit card usage, not specific to any amount: You load any amount into your wallet, using credit card, and pay 2% extra charge.
However, after users raised concern, and a lot of hue and cry, Paytm reversed their decision to charge extra 2% from their credit card users.
They had said, “We are suspending 2% charge on credit cards for adding money to wallet keeping users’ convenience in mind,”
There were reports, that Paytm is locking down money, which has been added by credit cards.
But now, it is clear that Paytm is charging 2% extra, albeit, only for those credit card enabled money topup, which is more than Rs 10,000.
We will keep you updated, as more details come in.