• Rajasthan

    Cong 99
    BJP 73
    RLM 3
    OTH 24
  • Madhya Pradesh

    Cong 115
    BJP 108
    BSP 2
    OTH 5
  • Chhattisgarh

    Cong 68
    BJP 15
    JCC 7
    OTH 0
  • Telangana

    TRS-AIMIM 95
    TDP-Cong 21
    BJP 1
    OTH 2
  • Mizoram

    MNF 26
    Cong 5
    BJP 1
    OTH 8

* Total Tally Reflects Leads + Wins

Paytm imposes charges on credit cards for adding money to wallet: Here’s how it will work

By: | Published: March 9, 2017 11:22 AM

In a bid to avoid the misuse of credit cards, Paytm has announced some changes in its terms and conditions. It said in a blog that in the month of November they launched a new payment platform for small merchants at 0% fee.

When you are making any purchase on Paytm or doing a checkout from the Paytm cart, you will see a promo code field where you can apply this coupon.

In a bid to avoid the misuse of credit cards, Paytm has announced some changes in its terms and conditions. It said in a blog that in the month of November they launched a new payment platform for small merchants at 0% fee. Millions of merchants are accepting Paytm at their shops/establishments. They prefer to take money to their bank accounts and as a promise to democratizing payments, Paytm made transfer to bank fee at 0%. This was extended to all their users as many shopkeepers/ merchants also used their personal Paytm accounts to accept payments at their shops.

This 0% transfer to bank fee left an opportunity to misuse this service meant for 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,” it said.

Some financially-savvy users (surprisingly many of them employees of national financial institutions) exploited this model to rotate money. To avoid this misuse, Paytm is making some changes in their terms.

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It said there will be no fee when you shop on Paytm or pay for any utilities using your credit card or any other payment option, but to avoid the misuse of credit cards, they will put 2% fee (inclusive of taxes) only on adding money to wallet using credit cards, while adding money using any other payment option remains free.

However, this 2% fee charges on credit cards would be reversed in the form of a discount coupon for the same amount which will be issued within 24 hours of adding money effectively giving you this fee back. “This hopefully keeps unintended misuse of our platform away and as a consumer, you still enjoy our services at no extra cost,” it said.

Here is how it will work:

1. When will I get the gift voucher in lieu of 2% credit card fee?
You will receive a gift voucher totaling the same amount charged to you as a fee in an email & SMS within 24 hours of adding money.

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2. Where can I use that gift voucher?
You can use that gift voucher on Paytm for various services, including recharges, bill payments, movie tickets, shopping, bus tickets, air tickets & all other services on Paytm. However, you cannot use this voucher on Add money transaction.

3. Will it be a promo code? How do I use that?
Gift vouchers will contain a unique promo code. When you are making any purchase on Paytm or doing a checkout from the Paytm cart, you will see a promo code field where you can apply this coupon. The amount will be given as an instant cashback post your transaction

4. What is the value of gift coupon that you will receive?
For example, if you added Rs 500 to your Paytm wallet, you would have been charged 2% = Rs 10 as credit card fee. You will then get a gift voucher worth Rs 10 in your email/SMS.

5. While doing a checkout on Paytm, please use the gift card code shared with you.
If you are doing a purchase of Rs.10, you will get a cashback of Rs.10
If you are doing a purchase of Rs.20, you will get a cashback of Rs.10
If you are doing a purchase of Rs.5, you will get a cashback of Rs.5

This cashback will be given instantly in your wallet which can be used for subsequent transactions on Paytm.

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6. Can I use this gift voucher on your partner Apps/websites?
No, this voucher can only be used in Paytm App.

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