Press "Enter" to skip to content

Petrol Pumps Won't Accept Card Payments from Tomorrow to Protest Transaction Fee

CNN-News18

First published: January 8, 2017, 7:22 PM IST | Updated: 1 mins ago

Representative image (PTI)

New Delhi: Petrol pumps across the country will not accept debit or credit card payments from Monday to protest the imposition of a 1% transaction fee by banks.

“In view of the debit of MDR (Merchant Discount Rate) of 1% it has been decided to stop accepting payment through credit/debit Cards from 9th January 2017,” said Ajay Bansal, President of All India Petroleum Dealers Association, in a statement.

The move comes a month after the government announced 0.75 percent discount on card payments at fuel stations and is likely to add to the woes of motorists as the flow of new currency notes post demonetisation is yet to normalise.

“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 one per cent plus taxes on all transactions done at our outlets,” PTI quoted KP Murali, President of the Tamil Nadu Petroleum Dealers Association, as saying.

This move was a ‘unilateral’ one by bankers who had installed card swipe machines at the fuel outlets, he added.

Protesting the move, he said their margins were fixed on a per kilolitre (KL) basis and that they did not have scope to absorb these charges.