[autopsyche]

Originally Posted by alpha1

But my personal experience has been that all the shops where I have paid 1.5% extra, the shopkeeper has billed the added 1.5% amount also (The most recent ones being the new tyres I purchased few months ago).

Yes, the charge is included in the CC Receipt, but not on the purchase bill.

[mjothi]

If my memory servers right, there is a clear guidance from RBI saying that any charge on credit card purchase other than the material and tax (sales/service), is suppose to be born by the merchant or card people. But when this was announced, all the card company was charging a Annual fees for the card. So, this was highlighted by RBI as the reason for not to charge and transaction or surchage for CC. But now, most card companies started giving life time free card.
So, I am not sure if there were any amendments to it. But I would say it should not be. Because, its the card company who are giving it for free to fight competitors.

[muralisk]

It's true that customers are not supposed to pay the bank charges, but there are some establishments who always charge. It was quite surprising, that till recently even Dakshin Honda used to charge. Last week, I had given my car for 20K service and to my pleasant surprise, they have started accepting Credit Cards without asking for the additional 1.5% bank charges.

[dadu]

Yes, but that choice is not for the shopkeeper, its illegal and I want them to follow the rules, otherwise give the receipt with the line breakup.

Originally Posted by alpha1

Dadu, in your case, its your choice. The shopkeeper always tells you in advance that you would pay something extra. Just don't take that route, if ou don't wish to pay.
Its a free open market. No one is forcing you to use your credit card, just because you have one.

Are you saying you are willing to go against the law as long as there is a demand for it ??

Originally Posted by autopsyche

Exactly, the CC machine is available for those who are willing to pay the 1.5% for those who do not wish to the ATM / House / Next shop, are always there, just like you said you do when youre out shopping.

Like i said before, if the customer is willing to pay for his convinence, why should i not keep a CC Machine? As long as there is a demand there will be a supply.

People who want to fight this practice, If you have the original bill (less the extra charge) and the CC charge slip (with the extra %age), you can actually dispute it with your CC company saying that the shopkeeper charged more than the bill. The extra amount will be refunded to you.

[NetfreakBombay]

Originally Posted by alpha1

Its a free open market. No one is forcing you to use your credit card, just because you have one.

My opnion as well.

Earlier, I used to pay this amount since things turned out to be cheaper even after paying 1.5/2.5% transaction fee to merchant. Thats is if you are buying something from a small shop, things were usually cheaper.


Now, at bigger stores things like electronics are available at the same (or even better) rate, so no need for paying this fee. When I was looking for a cell phone few weeks back, local shop quoted rate of 20,000 + 2% fee for using card. A bigger store had price tag of 19.5k all inclusive (and no transaction fee). So that store got the business.

[bblost]

A merchant is free to charge the xtra.
BUT it must be mentioned in the bill.

When there is a disparity in the amount mentioned in the bill and the credit charge, action can and should be taken in favour of the customer.

Does not matter if the customer agreed to the extra charge, the bill is the only proof the merchant has about this.

[HappyWheels]

Originally Posted by mjothi

If my memory servers right, there is a clear guidance from RBI saying that any charge on credit card purchase other than the material and tax (sales/service), is suppose to be born by the merchant or card people...

But then, since people have their own opinion, we cannot make anyone change unless they need to.

I do not pay thru card if there is a service charge. I would rather pay them by cash. The latest one being the service thing came up when I purchased few furnitures for 21k. Shop keeper say service charge 2%, I say wait, cross the road to an ICICI ATM, withdraw cash and pay him.

Why pay him the extra 2% since it makes no difference to me? Yeah, we do have the benefit of not carrying hard cash, but that does not mean that others can exploit my benefits!

[dadu]

Bingo, you've hit the nail on the head. This is the way to go and to end this discussion.

Originally Posted by bblost

A merchant is free to charge the xtra.
BUT it must be mentioned in the bill.

When there is a disparity in the amount mentioned in the bill and the credit charge, action can and should be taken in favour of the customer.

Does not matter if the customer agreed to the extra charge, the bill is the only proof the merchant has about this.

[Fountainheader]

The whole system doesn't really encourage us to use credit cards. The reason I use the credit card (Esp making purchases more than 5k) is that I'll like to utilize the 45/50 days period that the card gives. I generally walk out when merchants ask for the additional charge. But at times I am forced to. I think there should be a change in the system. Banks go around calling and calling trying to sell more than 1 card to me, but don't give me the freedom to use whenever and wherever I want!

[autopsyche]

I acknowledge your points, but all im saying is that case scenario is on MRP. I agree as far as MRP is concerned the surcharge should not be added and it has to be borne by the merchant.

However in smaller establishments like ours, the customer more often than not everytime asks for a discount and gets a discount on the listed prices, in that case we have no option but to add the credit card surcharge if thats the mode of payment. I shall not charge a rupee more if the customer is paying us list price, but in discounted cases im not willing to bear the brunt of another 1.5% no matter small change it may be.

[muralisk]

Originally Posted by ajmat

What is a really a killer are forex transactions. HSBC juice me by 10% in currency exchange rates when shopping abroad. Does anyone know any alternates?

There is something wrong. I use Citibank and Amex for most of my dollar purchases and I don't get charged anything extra apart from the appropriate bank charges. I think you need to either call and resolve or report it with Banking Ombudsman.

[bblost]

autopsyche, I am not in retail. I have no idea how the system runs and request you to not misunderstand my intentions.

If you are giving discounts then it appears the amount charged is different for the same item depending on the customer.
So if an item is valued at 100. After discount a 25% it becomes 75. Do you give a bill for 100 or 75.

If you are giving a bill for 75, then why dont you give a bill for 75 if payment is cash and a bill for 76.125 (75 + 1.5%) to credit card payers.

This way you get the extra amount and also have the legal document (Bill) to show the customer accepted this amount.

[autopsyche]

Surely bblost, it is a healthy and informative discussion for all of us.

The billing for Rs.76.125 can certainly be done and given to the customer in case of CC payment.

[spadival]

I doubt whether RBI issued any guidelines on this 1.5% surcharge. Its purely an agreement between the merchant, acquirer bank and the network - Visa/MasterCard.

The merchant would be breaking the T&C of the agreement if they charge a 1.5% surcharge. But the only thing you can probably do is complain to Visa/MasterCard about it. They are supposed to disqualify the merchant.. blah blah.. But this is India, I dont think anything is going to come out.

[rkg]

Banks charge 1.5 to 2.5% when credit/debit card is used at merchant establishment.

what puzzles me on what basis banks charge commission on debit card use?

Here the customer is using his own money. bank is not lending anything.

It is like bank charging, whenever customer uses check.

to process check bank has to spend more than what it spends on debit card transaction

One may argue bank has spent lots of money in establishing the network. to do business one has to spend. In earlier days banks have to spend more to open branches to have the same reach as they are having now with out so many branches. Here they are saving.

At the most they can charge Rs 10/ per transaction but not on percent basis. because the cost per transaction is same whether it is Rs 100 or Rs 25000/-

Actually govt should encourage the use credit and debit cards as it is one way to eliminate black money and also to reduce fake currency. but priorities of Indian govt are entirely different that is why they have put so many taxes on card use like service tax etc etc