With 4 major banks deciding to charge for these from today, dealers say they have no other choice
Latest News - Following a decision by four banks to levy a charge for every sale on a credit or debit card, two petroleum dealer associations have decided not to accept any card transactions at fuel retail outlets from Monday.
The decision covers a majority of the 56,000 outlets in the country. The four banks are HDFC, Axis, ICICI and Punjab National Bank.
"We have been informed by these four banks that we will be charged one% on all credit card transactions and between 0.25% and one% on all debit card transactions from January 9. Reports suggest even State Bank of India is planning to charge the same. We feel banks are using this as an excuse to improve their bottom line through transactions at fuel stations.
Hence, we have decided not to accept any card transactions from Monday," A D Sathyanarayan, president of the Consortium of India Petroleum Dealers, told this newspaper.
Dealers say a 1% charge would mean 30% of the gross dealer margin on petrol and 40% on diesel. "Our margins will be wiped out if we accept this. We have specific mechanisms to compute the margin and these do not have any scope for credit card merchant discount rates," Sathyanarayan added.
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