The issue deserves the attention of Regulator-RBI.Rediff.com is requested to send copies of the response received to RBI to draw their attention. Regulator will regulate. I repose confidence in RBI.
RE:Transaction fees on credit card
by Manojk on Nov 30, 2007 09:02 PM
till know in india credit card bussiness is not regulate by RBI. IF REGULATED BY RBI UR PAYING INTREST MAXIMUM 24%p.a. in future may be or may not be.
Charging of transaction fee on the use of credit card is not only unhealthy but cheating with the customers as well. Most of us are unaware that these charges are to be borne by the seller only becauuse they are loking for more sale & more profit. Credit card is a facility offered by various companies to which the sellers are also the member and as a mean to promote their sale volume even they offer the service.
Never Pay transaction fees to any seller if they do so ask seller, so pls ask for details like ur tie with which financial co. give me ur machine id and immeditly call up that finance co. & say ur marchant is charging transaction fees. and take refrence no. from the finance co. marchant will be in trouble.
If you go on paying the chages to be borne by the business people, there is no end to it, they simply pass on the same to customers like service tax. Service tax, I feel, entirely to be borne by the business community for providing services to the customers ( making business, inturn in the market). If you pay credit card charges today, in future, when ever there is any increase in the cooking gas rates for domestic sector, business people will recoup their increased expenditure on account of this from your bills, Beware!
RE:Which is the Best Credit Card Company
by Amitabh on Nov 30, 2007 09:04 PM
Yes,never use a credit card to withdraw cash from ATM.Always use a debit or ATM card.
Do not pay transaction fee if you are being charged MRP. Retailers get 8-10% margin and can take the 2.5% cc card hit. If you go to discount stores where the prices are way below and the margins are thin and the person requests, bargain for 1% not 3%
I am using IndianOil-Citibank CC for the past 10 years. I find it profitable to use for purchase of fuel at select IOC outlets, where no tr.chg. is levied. Citibank gives 1% reward on such transactions. CC should be used at such places where rates are same for cash/credit purchase (i.e paying hotel/restaurant/telephone/medical bills, etc)
RE:Credit Cards - use wisely
by Amitabh on Nov 30, 2007 09:06 PM
Use the Indian Oil citibank gold card.You will get 4 points for every Rs 150 worth of fuel purchased from select IOC outlets.
I have on occasion used my Credit Cards for Cash Withdrawls from ATM Machines in India and Overseas.I pay the interest at approx. 2.75% p.m. annulised at 33% approx.
However, over and above that charge, which is understanable as I am availing of crdit, the Bank that issued the Credit Card to me also charges a Transaction Fee over and above the intrest levied. This is calculated on a percentage of the amount drawn or a minimum flat fee. Obviously the latter has been fixed so as to ensure a levy of abot 3.5% on the cash withdrawl under the head: Transaction Fee . Thus in effect the Bank concerend is charging me a total of over 6.25% p.m. or 75% p.a. approx. Is this permissible by the RBI or should i report these charges as illegal? Dewan Seth Pune
RE:Transaction Charges on Cash Withdrawls on CreditCards
by Manojk on Nov 30, 2007 08:53 PM
MR. PAUL I fell ur not intrested to read all the terms and condtions off the credit card co. ATM Transaction fees is only one time fees charge by the card co. & card co. card co.given u the Emergency facility to use for short time not for loang time.if u take credit card as a positive way ur always winner. thanx
