India’s digital wallet company Paytm on Wednesday announced that they will be charging 2.0 percent fee on money transferred to the wallet through credit cards. According to Paytm this step was taken to counter the abuse of 0 percent fee transfer scheme by credit card users. Paytm explained how a few cunning users made use of their Paytm account to earn Extra reward points through their credit cards. The money was added to their Paytm account via credit credit cards at 0 percent and then was transferred to the bank account.
To stop such practices Paytm had to imply additional 2 percent fee on transfer through credit cards. This being said Paytm also stated that the 2 percent fee will be compensated in the form of coupons considering the genuine users. The coupons can be used on Paytm only and minimum amount to be transferred should be above Rs. 250.
The company, on its blog post has also mentioned that the coupons can be retrieved on third-party sites like Uber and Swiggy. Apart from this no 2 percent fee will be charged if the money is transferred through these third-party applications. There will be a fresh coupon every time you transfer money using credit card. These coupons cannot be clubbed and are to used individually for a single transaction. These coupons not being any sort of discount coupons, will give instant cash back in your Paytm account on every transaction.
Importantly, if you are a debit card user or carry your transactions through net banking etc you remain unaffected by this.
This is all for now, we’ll keep you updated with more from Paytm. Stay tuned!