[invidious]

I guess a Rupay card is a workaround. Many banks are issuing one now. You can use a UPI gateway to pay using a Rupay card.

In 2015 I bought an i20 using a credit card. The dealer told me that he would charge me 1% extra and pay the other 1% from his own pocket. Seemed OK to me.

[Zippy_wheels]

Originally Posted by headbanger

Then why take the pain of keeping a POS for credit card. Just say we don't accept credit cards. Gone are the days when digital transaction meant credit card predominantly. Use other options like UPI, debit card or wallet for smaller transactions.

I mean the whole essence of credit card is to add ease of payment and in the process change consumer behavior to spend more. Keeping a POS and then dissuading a potential customer to not use credit card is contradictory.

Its not just that. They need to keep the option of credit card so people who do not have, or dont want to spend the money they have right now, use a "credit" facility. They will lose business if they dont keep this option. Other credit options like paytm postpaid, simpl, lazypay etc do not work everywhere.

[headbanger]

Originally Posted by Zippy_wheels

Its not just that. They need to keep the option of credit card so people who do not have, or dont want to spend the money they have right now, use a "credit" facility. They will lose business if they dont keep this option. Other credit options like paytm postpaid, simpl, lazypay etc do not work everywhere.

Agreed. That's the whole point. If you want someone to spend the money they don't have at that point in moment, why put 2% charge to dissuade them of that option.

Consumer behavior is a strange conundrum. It will typically make arrangements for a no cost EMI by spending lavishly but quickly sees a red flag when it sees an extra charge (2% in this case).

Instead of putting 2% extra for credit card, just put a card stating 2% discount on cash payments.

[R.I.P]

MDR rate is not fixed at 2%, in most cases it is less than 2%

if a merchant achieves enough swipes in a month, MDR is waived off by Banks.

[GeeTee TSI]

Very timely thread.

I noticed it at Tafe Access Skoda last week and the intriguing part is that this seems to be a recent, co-ordinated phenomenon with explicit signboards and reminders to customers about the 2% charge. Never had it in my 2 years of interaction but thanks to UPI there is an easy workaround

[binand]

Originally Posted by headbanger

If you want someone to spend the money they don't have at that point in moment, why put 2% charge to dissuade them of that option.

If you look at the places that enforce this 2% rule, most of them will fall into into one of: (a) places where the surcharge comes into play after you have received the service, or (b) places where you have already invested so much time in choosing the product - the so-called high-involvement products - that the sunk cost fallacy plays a role.

That is, the merchant expects to recover their full cost+margin from you with or without the 2%. Their risk of loss of revenue is near-zero.

[roy_libran]

Card Scheme rules that all Cards need to align to, do not permit this additional 2%/x% charge on any product or service being offered at the MRP or equivalent, but do permit the same if the product is discounted.
And we all know that nowadays it is standard business practice to mark up and discount everything.

[nidhikapoor]

In India it goes against the agreement that a vendor needs to sign when he gets his/her EDC machine.

Having said that, I totally understand it from their point of view. Recently we made a few fairly large purchases for the new home we are building. Not a single vendor accepted CC without the 2%. Thier margins are so low I cant say I blame them.

[akshaymahajan]

Recently I have started seeing this 2% being added even when adding money to your wallet or paying some bills like Simpl. I did think that this was not allowed.

Anyways, when I bought my Interceptor 4 years back - Paid the entire amount on my CC without having to pay any additional charge at Teknik Motors. Though their SVC does ask for a 2 percent markup IIRC.

[skumare]

Originally Posted by R.I.P

MDR rate is not fixed at 2%, in most cases it is less than 2% ... if a merchant achieves enough swipes in a month, MDR is waived off by Banks.

Typical MDR charged by bankers/aggregators to merchants is around 1% on credit card swipes. If a merchant achieves some specific volume, his rental charges (for the device) may be waived off, but MDR is not typically waived off.

Originally Posted by nidhikapoor

In India it goes against the agreement that a vendor needs to sign when he gets his/her EDC machine.

There is a consultation paper published by RBI which is not keen on MDR applied on top of DC transactions (borne by customers), while CC transactions are exempted due to cost of credit etc.

[nidhikapoor]

In India it goes against the agreement that a vendor needs to sign when he gets his/her EDC machine.

Having said that, I totally understand it from their point of view. Recently we made a few fairly large purchases for the new home we are building. Not a single vendor accepted CC without the 2%. Thier margins are so low I cant say I blame them.

[Yesterdaysnews]

VTK and Jeep just keep hitting new lows don’t they! It’s just so unethical to demand the surcharge.

[RenuKumar]

It is shameful for VTK Jeep, these thieves are looting in broad daylight. I have experienced this 2% extra in some small shops but never in a professional environment. It is not about low margin or anything but it is about the integrity and dignity of a business operation

[vikramv4u]

Hi..

I bought a used Santro thru a Hyundai dealership last year and they charged me 1.5%.. i cringed, but eventually did pay up (almost 8k more).

Everytime i get my Ertiga serviced, Bimal Indiranagar charges me and extra % (don't remember the exact %), but i try to bargain my way out.. it's been fairly successful so far, but it's always chance based..

Again, I am ok with the extra 1.5% as these transactions give me Reward Points n this translates to about 3.3% benefit on my card.. n in some cases it helps me hit the milestone benefits as well.. so monetarily works out ok i think, although i still cringe everytime :-)

So moral of the story, bargain, if you can or pay up the extra amount, if you have a good credit card or.. UPI card is perfect for now seeing earlier replies :-)

Thanks

Vikram

[karthikrao23]

It’s completely legal, but unethical. Try debit or ups.