Paytm will charge 2% fee on using credit cards to recharge wallet
- Last year in November, Paytm had introduced 0% platform fee.
- Some credit card users had started misusing the 0-fee on transfers.
- Paytm is now making changes to stop the misuse.
Paytm has said that it pays a hefty sum to credit card networks and issuing banks when you use credit card. And, some users had started misusing the 0-fee that the company introduced with credit cards last year in November.
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"Some financially savvy users (surprisingly many of them employees of national financial institutions) exploited this model to rotate money. This may surprise normal users like most of us but for a savvy user it meant freebies at Paytm’s cost," Paytm writes.
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So, there will be no fee if you shop on Paytm or pay for utilities using credit card or any other option, but a 2 percent fee will be levied only when adding money to the wallet using a credit card. The blogpost further adds that this 2 percent fee would be reversed in the form of a discount coupon for same amount that will be issued within 24 hours.Â
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"This hopefully keeps unintended misuse of our platform away and as a consumer you still enjoy our services at no extra cost," Paytm said.Â