Bengaluru petrol pumps not to accept cards from Jan 9
- Petrol pump owners have said they won’t accept card payments to protest a new banking surcharge.
- Some banks providing POS services had informed operators of the surcharge on January 7.
- The Central Government has asked the banks to hold off on levying the transaction fee.
FollowJust when you thought the shock of demonetisation was beginning to wear off, owners of petrol pumps in Bengaluru have declared that they won’t accept payments made using debit and credit cards from the midnight of January 9 (Sunday night). The Bengaluru Petroleum Owners’ Association said it was withdrawing point-of-sale (POS) machines from pumps in the city to protest a new transaction fee being levied by banks.
The Times of India reported that ICICI Bank, HDFC Bank and Axis Bank had issued notices on January 7 that they would levy a 1% transaction fee on card payments in pumps. These banks support POS services in most pumps in the country. Ravindra, president of the association, told The News Minute that the surcharge would mean pumps would incur losses “equal to twice the profit they make.”
The Central Petroleum Ministry has requested banks to hold off on levying the surcharge to allow for consultations with oil companies and dealers.
