At Paytm we allow multiple payment options when you buy any product or pay for any utilities. We offer you to pay using Credit Card, Debit Card & Net Banking. Digital wallet company Paytm will now levy a 2 percent charge for adding money into the wallet using credit cards. No charges will be applicable on money transferred using debit cards or net banking.
After demonetization in November, Paytm had introduced zero percent platform fee to attract small merchants to accept payments from their wallet. The online recharge platform on Wednesday withdrew its zero percent transfer to bank fee facility. The reason cited was that multiple users were using Paytm to get free credit by using credit cards to top up their e-wallets and then transferring the money to their bank accounts at zero transaction cost. Paytm pays hefty charges when you use your credit card at card networks and issuing banks. If a user simply adds money and takes it to the bank, we lose money.” The 2% fee will be applicable with effect from March 8, adding that the platform will make money only if the wallet balance is used to pay for services and products on the Paytm ecosystem.
Users on multiple social media sites have also pointed out that the wallet was being used to earn credit card points and access free credit at no cost. Merchants processing credit card transactions, in this case Paytm, pay a fee for inter bank settlement of the payment, known as merchant discount rate which could be as high as 3 to 4%. Credit card users transacting on the Paytm marketplace, booking tickets and paying utility bills on the platform will not be charged the said fee. However, the company also said it will provide same amount of cashback for using credit cards to top-up the wallet.
Paytm suggest us to try out their new payment options?—?UPI (available on Paytm App & Paytm.com) or IMPS (currently available on Paytm website) to add money. UPI & IMPS are easy to use, powerful platforms made by our friends at NPCI.