Reasonable credit card charges
Debit card issuers also charge fees just for the service which is done on-line and involves no significant cost. Here, the fee should be as low as 0.25% or so. Similar service by drawing cash from ATM is free, which involves providing of cash adding to the cost and hassle to the banks and customers. Hence, if not a free service to the merchants/vendors similar to ATM withdrawals, the fee from vendors should be bare minimum as stated. This would not lead to added cost of goods as in the case of Credit card.
These principles should apply to other cards like RUPAY also to encourage cashless transactions.
Now that the Govt. wants to promote digital payments, the fee for use of credit, debit and prepaid cards should be regulated by RBI on a practical and consumer-oriented manner, to promote digital payments. more