You must Sign In to post a response.
  • Category: Banking

    Why is card payment surcharge rate unique in different states?

    Wondering why card payment surcharge differs among various states? Get answers to your query on this Ask Expert page.

    What is card payment surcharge? Why card payment surcharge rate is different in different states?
    When I purchase something in Hyderabad, the small merchants charge 1-2% card swipe or card payment surcharge after the total billing. However, in Odisha it is not at all. If you go to any small shops in Odisha and do card swipe there will be no extra charge at all, but it is applicable in Hyderabad. I want to know the reason from our members: is it really a rule in the metros or some state government rules on banking?
    Experts: do clarify this.
  • Answers

    2 Answers found.
  • Card payment surcharge:-
    Surcharge means check out fee. To cover expenses of merchant service charge an extra payment is charged. It is a kind of payment system. No surcharge means one need not pay any extra fee i.e., it is included in prices. Withdrawal of charges i.e., service charge and convenience fee on cards is known as card payment surcharge.

    Different card payment surcharge in different states:-
    You are facing different surcharge fees in different states and that is because certain states, organizations have introduced it whereas others have yet not introduced it.

  • Card payment surcharge comes under the state's service taxes. As each state in India has specific prices when it comes to the service charge it becomes hard to have unique percentage of the taxes for surcharge.

    Credit card and banks too have their own specific percentage assigned for the card surcharge. So you may find that in some states those charges don't apply if the company and bank has that policy in the specific state. So the card charges will have the reflected pricing accordingly. The same applies even on some debit cards too.

  • Sign In to post your comments