Digital wallet platform Paytm makes a u-turn on credit card fee in a new blog post saying that, “we are suspending 2% charge on credit cards for adding money to wallet keeping users’ convenience in mind.” “We are conscious that this move caused inconvenience to a large segment of our users, including those who are using their credit card for genuine transactions.”
Read more: Paytm to charge 2% fee on recharge via credit cards to avoid misuse of the service
Earlier, online recharge platform Paytm announced to make some significant changes in Paytm wallet. The firm had said that it had observed a rising misuse of the medium originally meant for the service of its customers along with levying a two percent fee charges on adding money to wallet using credit cards.
“To avoid this misuse, we are making some changes in our terms. There will be no fee when you shop on Paytm or pay for any utilities using your credit card or any other payment option but to avoid the misuse highlighted above, we will put two percent fee (inclusive of taxes) only on adding money to wallet using credit cards while adding money using any other payment option remains free,” Paytm wrote in its official blog announcing the decision earlier.
While clarifying its stand further and the trend of routing money to bank accounts through Paytm via use of credit cards, the company had said in its official blog, “This zero percent transfer to bank fee left an opportunity to misuse this great service meant for our valuable customers. We saw a disturbing trend when many users started funding their Paytm wallet with their credit cards and transferring it to the bank all for free. They were not only getting free loyalty points which effectively is free cash but also getting access to free credit.”
Paytm also made it clear that it has to pay a big amount when such transactions take place and also there is no much scope to earn through such transactions. But now, it said there will be no more fee for using credit cards to add money.
