Banks had planned to levy additional service charge for card transactions.

Petrol pumps to accept credit debit cards till January 13 after last-minute govt interventionPTI/ Representational image
news Demonetisation Monday, January 09, 2017 - 11:29

A last-minute government intervention has resulted in some respite for citizens as petrol pumps are going to accept debit and credit cards at least till January 13.

The All India Petroleum Dealers Association's decided to revise its earlier announcement after consulting with the Petroleum Ministry, as banks also deferred charging transaction fee up to one per cent on card payments.

On Sunday, the association had announced that they would not accept payments through credit and debit cards from Monday in protest against the additional charge levied on such transactions.

"The AIPDA on Sunday decided to stop accepting payment through credit and debit cards till the decision to levy these additional charges are reversed. 

"Late on Sunday, banks communicated to us they will not levy the transaction fee on card payments till January 13. Accordingly, we have decided to continue accepting payments through cards till Friday," AIPDA's West Bengal unit's General Secretary Saradindu Pal told IANS.

"Retail outlet owners and consumers should not take any heat of any kind of surcharge. Government is suggested to negotiate between oil marketing companies and bankers because it's a business preposition. The issue will be resolve very soon. Oil marketing company is giving some subsidy," Petroleum Minister Dharmendra Pradhan said.

This comes after the All India Petroleum Dealers Association said on Sunday afternoon that as a mark of protest against the Merchant Discount Rate levied by the bank for credit/debit card transactions, they would reject debit/ credit card payments.

 The decision was taken at the state level convention of petroleum traders held in Mangaluru which concluded on Sunday.

From Monday, banks were expected to levy an additional service charge (0.25-1%) as Merchant Discount Rate for debit card transactions and 1% for credit card transactions. Following the government’s intervention, banks have decided to defer the decision to apply MDR tillJanuary 13.

https://ssl.gstatic.com/ui/v1/icons/mail/images/cleardot.gifPresident of All India Petroleum Dealers Association Ajay Bansal in his Sunday’s statement said, “HDFC and other Bank that we will be charged 1% on all Credit Card Transactions and between 0.25% and 1% on all debit card transactions from 9th January 2017.” 

“The same will be debited to our account and net transaction value will be credited to our account. They have quoted RBI Circular DPSS.CO.PD.No.1515/02.14.003/2016-17 dated 16th December 2016 as the root cause of this debit,” he added.

He stated the since margins for petro dealers are fixed on a per Kilolitre basis they do not have any scope to absorb these charges. 

Petrol bunks to stop accepting cards from midnight, carry cash with you

(IANS inputs)

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