Paytm to charge 2% fee on recharge via Credit Card
Save yourself from letting 2% fee charged when you use your credit card to add funds in Paytm wallet.
Here comes the new news from Paytm, where it says that from 8th March 2017 an additional 2% of the fee will be charged from the user paying /adding money in wallet through Credit Card.
A report in the Economic Times says that this has been done as more and more users were using the platform to get free credit by using credit cards to fill up the wallet and then transferring that money back into their bank accounts.
The reason as per Paytm
The reason for the change in Paytm policy is that they pay hefty charges when the user uses Paytm to add money from credit card and then sends it to the bank accounts. There were many users who have used this method to rotate the money from the credit card to debit card using the service of Paytm.
This usage method anyways helped the user to get the credit points by simply rotating the credit card amount to the bank account/other sources. The credit points so earned by the user can be further used in different transactions, in turn giving no profile to the credit card organizations.
After the demonetization in November though Paytm has initiated a zero per cent transaction fee to attract small merchants across the country, but this step is taken considering the circulation of the fund.
“This 0% transfer fee devised an opportunity to misuse this great service meant for our valuable customers. We saw a disturbing trend when many users started funding their Paytm Wallet with their credit cards and transferring it to the bank all for free. They were not only getting free loyalty points which effectively is free cash but also getting access to free credit.”- Official sources said.