Mobile wallet company Paytm will henceforth levy a 2% fee if the wallet is recharged using a credit card.
Announcing this decision on its blog, the company said such a fee will be levied to prevent users who “exploited this model to rotate money.”
“Paytm pays fee to card networks or banks whenever you use any payment instrument like any other online commerce company. Paytm pays a hefty charges when you use your credit card to card networks & issuing banks,” the post said.
In November, the company announced a 0% transfer to bank fee, in a bid to enable more shopkeepers and other small merchants to use the Paytm platform for business transactions.
The fee is only for recharges and not when a credit card is used for shopping on Paytm, the company said. The fee amount will also be reversed in the form of a gift voucher within 24 hours, the company said.