New Delhi: Paytm has started charging its customers a 2 per cent fee on loading their e-wallet with excess above Rs 10,000 in a month via credit card, effective from January 1, this new year. However, there are no such charges on top-ups made via debit card or Unified Payments Interface (UPI) system.
In a Twitter post, Paytm had said, “In case the total money added by credit card, including current transaction, exceeds Rs 10,000, the entire transaction amount will be charged as 1.75% + GST.”
This means that customers topping up their wallets in a single transaction of Rs 10,000 or multiple transactions that sums up to more than Rs 10,000 will be charged an excess fee. For instance, if you add Rs 3000, and then Rs 6,000 to your e-wallet, you will not be charged as the cumulative amount is below Rs 10,000. However, a further transaction of Rs 1,000 and above will be taxable at 2 per cent per transaction.
According to the leading e-wallet company, the change in policy has been made in order to save costs on excess transactions. The move is also aimed at plugging the loophole some users took advantage of by borrowing sums by an indirect and longer method to benefit from the 40-day interest-free period most credit cards offer.
Paytm had considered imposing such a fee a year ago as well, but stopped from implementing the same. Paytm will be observing how customers react to this new policy as many people use the e-wallet to pay for their taxi fares, and at departmental stores.