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Originally Posted by GrammarNazi Why? On 30th March, 2016, when I wanted to apply for a 2nd Current Account & card swiping machine, this is the response I had gotten from Canara Bank (where my family had savings account since 30 years). |
Pardon my ignorance. My understanding is that Current accounts are opened by business houses (how ever small). And looks like you already had a current account. Was it in Canara Bank? Or was it at a different bank? If at a different bank, you could have approached them for a POS? And I feel Savings bank account (especially by family members) may not be a justification to ask for a current account or POS. Because a business entity is different from a family entity.
Even PayTM had this problem; that for vendors they expected them to have current accounts (to which they would link PayTM). Don't know how they overcame this problem. My friendly medical show chap has given me a credit line. Buy all medicines pay him, when ever I have money or when he gets the POS; which ever happens first. And he readily admitted that 8 months back the banks had approached him with a good offer for a POS to be installed. He refused then
. The local bar & wine shop fellow did not refuse; he now has got even more business. Today when the medical shop chappie is trying to get POS, he is in a long queue.
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I refused to bow to such unfair rules and they did not budge. Imagine, banks, on record, refusing business that'll earn them deposits.
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A story from the other side. I had to change the wheel caps of my vehicle. Approached a shop who deals with wheel caps and seat upholstery. Chappie's friend had a mobile shop running next door. The amount was around Rs.1200 odd, and I asked him whether he accepts cards. With a smug (and an attitude of
take it or leave it), he said he only accepts "cash payments" how much low or high the charges were. I asked him to see if the next door mobile shop can help me. He said they also don't accept cards as a matter of principle. I walked to the ATM 500ms away, and withdrew money and paid up. I cross the shops twice a day; the mobile shop has shut down right since November 10th. The upholstery shop seems to have unsteady business, saw it open for around 8-9 days all this while. To be frank; I really doubt what kind of "business" they were doing having this upholstery and mobile business as "fronts". To sum it up; if businessmen have to be made to pay their tax dues completely, there has to be proper electronic trails. I mean "electronic", because that would be only thing which cannot be forced/cajoled to look the other way. If these machines can be bribed, rest assured that option would be utilised by our traders.
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Originally Posted by binand Usually, if you spend Rs. 100 on a credit card, the merchant receives about Rs. 98. The remaining Rs. 2 is the fees charged by all the players involved - the acquiring bank, the issuing bank, an aggregator if any, and the network (Visa/Mastercard etc.). |
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Originally Posted by binand The idea is to treat this 2% as a cost of doing business. |
A friend of mine is a small time business man. And his explanation seemed to be reasonable. The banks tell him that, the service charge is taken from him because the credit card helped him get more business
. He deals with computers where the minimum price would be around Rs.10,000. No body generally walks around with so much cash. So if some one comes to his shop, find out the price is Rs.10,000 that person may just walk off. The moment he leaves the shop, he may get better ideas on spending Rs.10,000 and may not even come back. Now think about credit card? He gets a "loan" instantly, and he can make that purchase and go home. My friend, has got a sale of Rs.10,000 at once. Now 2% on that amount is not very high, right?
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Originally Posted by pramodkumar Regarding prerequisites for getting a POS machine, actually there is none, my friend got a POS machine from SBI branch the moment they decided to move their current account into SBI, the rentals were waived off for one whole year, so actually its the bank manager's discretion to give a POS or not. |
At present all banks have a long queue of business men asking for POS machines. Which itself is a kind of proof to say that businessmen have taken a hit and now are okay to have a POS machine at their shops. 8-10 months back in my area, PSU banks were going from one shop to another encouraging them to have a POS machine at the shop. None of them (except a bar & wine shop) wanted it then. Now these folks lose revenue, or have to give credit to all and sundry hoping that those good souls would pay up.