Paytm withdraws 2 percent fee on credit card recharges

tech2 News StaffMar 10, 2017 09:41:42 IST

After levying a 2 percent charge for its customers when recharging Paytm accounts using credit cards, the company today announced that it has withdrawn the same. The service announced that it has rolled back the charge that was put in place to prevent misuse by some customers because it was causing inconvenience to other customers.

The company announced the news about the roll back of charges via its official blog post. Paytm also said that it will introduce a new feature that will would prevent credit card misuse by some customers while adding money to their Paytm wallets.

"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." wrote Paytm in an official post.

"Keeping the millions of customers' and merchants' interest as utmost priority, we have decided to suspend the 2% fees and will continue to build a series of features to curb such misuse."

Not too long ago Paytm noticed a trend where some its customers had begun to misuse the credit card recharge facility that is available with its wallet.

Some users had used the service to get free credit to refill their wallet and would then transfer money to their bank accounts, a move that came free of cost to these customers.

“Some financially savvy users (unsurprisingly, many of them were 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.” said an older post. Paytm has started implementing the charge from 8 March.