Paytm has added a 2% fee on funds added to wallet using credit card (CANCELED!)

Sushubh

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Oct 29, 2004
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they claim this is to stop abuse.

Announcing few changes in Paytm Wallet

To avoid this misuse, we are making some changes in our terms. 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 highlighted above, we 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 card would be reversed in the form of a discount coupon for 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.
2% discount coupon will be sent within 24 hours of adding money using credit card. This change applies from March 8th. (Note: You will get a gift coupon by an email & SMS within 24 hours. You need to add more than Rs.250 using a Credit Card to be eligible for this offer)
I am not sure what a discount coupon means here.

PS: Based on a comment made by a user later in this thread... If you use a virtual card paid using debit card, it is still considered as credit card so you are still charged extra.
 
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Sushubh

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I added funds using UPI earlier today because I was on the road and dealing with OTP sounded painful while walking. Worked great.
 

Sushubh

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Oct 29, 2004
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i might be wrong here but i thought wallet apps blocked transfer of funds back to bank account if it was added through credit card. refund was only processed through the original mode of payment?
 

mhsabir

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I guess with their Paytm bank accounts coming up - they dont want people to load from credit card & put in paytm bank account & earn interest & pay the credit card company after a month...
 

Sushubh

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Oct 29, 2004
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so do not allow transfer to bank account from credit card? mobikwik keeps track of these things right?

I just tried adding 500 bucks using credit card. I did not see anything flashy informing me about these new charges. I only saw 510 (instead of 500) on the otp page of credit card company.

i wonder how many people would miss this in the coming days :D
 


mhsabir

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Paytm also tracks source, so they can block it as well. In fact I thought they were going to charge for bank transfers ofcpaytm cash - so the fee does confuse me...
 

Sushubh

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misuse is just being highlighted as an excuse to lower their operating expenses. they are just passing it off as something nice they are doing for credit card companies.
 

mhsabir

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They prefer to take money to their bank accounts and as a promise to democratizing payments, we made transfer to bank fee at 0%. This was extended to all our 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 great service meant for our valuable 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.
So to fix an issue that has already happened in the past and is unlikely to recur (unless they make it free for some reason - next demonization era maybe?), they create a preventive measure for the future.
 

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