Paytm deny claims that it will levy transaction fee to customers

Jul 1, 2019, 7:50 am

Moupiya D.

SEE ALL

Indian digital payment platform, Paytm, on Monday, clarified that it is not levying any charges to customers for digital transactions made through its platform.

After reports emerged that users will have to begin shelling out a fee for Paytm transactions, the digital wallet major has issued a clarification saying that Paytm App or the Payment Gateway owned by One97 Communications does not charge or levy any convenience or transaction fee from its customers for using payment methods including cards, UPI, net-banking, and wallet.

Paytm App/Payment Gateway owned by One97 Communications Ltd. does not charge or levy any convenience/transaction fee from our customers on using any payment method which includes cards, UPI, net-banking, and wallet – Paytm

Further, Paytm clarified there had been a few merchants like educational institutes or utility service providers who do not absorb credit card charges and expect customers to pay the same. In such cases, Paytm said it recommends its users to pay through their debit cards and UPI to avoid these charges.

While Paytm said these charges aren’t levied by Paytm in any scenario, the Economic Times report further states that Paytm is merely passing on what is called the merchant discount rates (MDRs) that the banks and the card issuing companies charge, for handling the transactions.

Meanwhile, Paytm, SoftBank and the Alibaba Group, has advised its customers to use debit cards and UPI to pay merchants or other utility service providers who do not absorb credit card charges and expect customers to pay the same.

TechGenyz Reporter
Icon