Update : Paytm now suspends 2% charges on credit cards. Paytm levied a 2% fee when a user used credit card to top up their Paytm e-wallet. Paytm updated their policy to avoid misuse, however they have reverted back, so no 2% fee on Credit Card usage.
As per Paytm many users were using credit card to top up their e-wallets and after doing that they were immediately transferring the money to their bank accounts. So if you look at this the customer got money using credit card and put that into bank for zero transaction cost.
People usually follow this method to rotate cash, as you get a credit period when using a credit card. The 2% blanket will put an end to this method. However the genuine Paytm customers who were genuinely using the Credit Card will also need to pay 2% fee. The company is offering discount coupon for genuine credit card users but I don’t think that will be of much help.
So what do you think about the new Paytm credit card 2% fee policy.
Tip: Shekhar Bandaru