Contact Your Financial Adviser Money Making MC
9
January 2017
Petrol
pumps across the country will continue to accept credit and debit cards till
Friday, an AIPDA official said on Monday. The Total Investment & Insurance Solutions
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. The Total Investment & Insurance
Solutions
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. The Total Investment & Insurance
Solutions
"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.
West
Bengal Petroleum Dealers' Association (a unit of AIPDA) President Tushar Kanti
Sen said: "We took the decision very late on Sunday night because some
banks communicated that they would not levy transaction fee till January 13 but
some did not. The Total Investment
& Insurance Solutions
"We
kept a close watch. Eventually, the Ministry requested us to defer the decision
till January 13."
In a
letter to Finance Minister Arun Jaitley, AIPDA President Ajay Bansal wrote that
the HDFC and other banks would start charging one per cent on all credit card
transactions, and between 0.25 and 1 per cent on all debit card transactions
from Monday. The Total Investment &
Insurance Solutions
"The
same will be debited to petroleum dealers' account and net transaction value
will be credited to our account... This will lead to financial losses for the
dealers," Bansal wrote. The Total
Investment & Insurance Solutions
However,
he had added, if any bank is not charging additional MDR and corresponds the
same to the association, the petrol pumps having Point of Sale (POS) devices of
those banks would keep accepting cards.
The Total Investment & Insurance Solutions
"If
banks start levying fees, it will cause squeezing of dealers' margin," Pal
said.
AIPDA's
decision for not accepting payments through cards came at a time when the
Centre had directed state-run oil companies to offer a 0.75 per cent discount
on the price of petrol and diesel to consumers paying by cards or mobile
wallets to encourage people towards digital payments.
"This
discount amount was supposed to be reimbursed to the dealers, but is not being
executed properly," Pal said. He said dealers have been working on a low
margin and demanded raising the dealers' commission to five per cent from the
existing rate of three per cent taking petrol and diesel together.The Total Investment & Insurance
Solutions
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