After Demonetization move, many people are opting digital payment option and wallets for their transactions. As banks announce a rise in transaction charges and allegations on ATM withdrawals, here is one more news for the users who are depending on digital wallets especially Paytm for their transactions.

Digital wallet player Paytm will now levy a 2% fee for adding money to Paytm wallet using credit cards. No charges will be applicable on money transferred using debit cards or net banking. The sad news is only for the credit card users.

 

As per the reports, this has been done as more and more users were using the platform to get free credit by using credit cards to fill up the wallet and then transferring that money back into their bank accounts at zero transaction cost. The process removed the transaction cost for customers. Paytm does not charge any fee to transfer money into bank accounts from the wallet.

“Some financially savvy users (surprisingly many of them employees of national financial institutions) exploited this model to rotate money. This may surprise normal users like most of us but for a savvy user it meant freebies at Paytm’s cost,” the company said in a blog post.

Discount Coupon For 2% Fee Charges:

However, this 2% fee charges on credit card would be reversed in the form of a discount coupon for the same amount which will be issued within 24 hours of adding money effectively giving you this fee back. This hopefully keeps unintended misuse of the platform away and as a consumer, you can still enjoy Paytm services at no extra cost.

2% discount coupon will be sent within 24 hours of adding money using the credit card. This change applies from March 8th. (Note: You will get a gift coupon by an email & SMS within 24 hours. You need to add more than Rs.250 using a Credit Card to be eligible for this offer)

Credit card users transacting on the Paytm marketplace, booking tickets and paying utility bills on the platform will not be charged the said fee. 

After demonetization in November Paytm had introduced 0% platform fee targeted at small merchants to accept payments to their wallet during the move to demonetise high-value currency notes.