Merchants can't charge 2% extra on Debit Card Payments - Says RBI

[Meenakshisundaram]

Merchants can't charge 2% extra on Debit Card Payments - Says RBI   Have you ever faced this situation, when you were making payment through your debit card or credit card? "Sir How are you making payment ? Debit Card or Cash ?" "Card" "Sir, There will be 2% extra charges if you pay by Debit Card ? " "Why extra charges ? I use it at every place and no one charges any thing extra ? " "Sorry Sir, this is our Policy. You can take out the CASH from the nearby ATM if you want to save that extra charges" "Huh ! .. &^#$^&*J#^&&#%$&*N" You often face the above situation, when you buy things like jewelry, Laptops, Mobile phones etc. I faced this 2-3 times myself, but could argue well with the shopkeeper, because I knew this is just a tactic used by shopkeepers to save on the charges they need to pay from their own pocket. Hence I never paid that extra 2% or just left the shop. Merchants can't charge any extra charges on Debit Card Payment - say RBI Now yesterday, RBI has openly cracked down on this unfair trade practice and issued a notification saying that Shop Merchants can not charge any extra charges from customers, if payment is done through Debit Card. Below is the exact wordings from RBI Notification 4. Levying fees on debit card transactions by merchants - There are instances where merchant establishments levy fee as a percentage of the transaction value as charges on    customers who are making payments for purchase of goods and services through debit cards.   Such fee are not justifiable and are not permissible as per the bilateral agreement between the   acquiring bank and the merchants and therefore calls for termination of the relationship of the   bank with such establishments.     Why Shopkeepers Charge extra 2% on Debit Card payments ?   When you swipe your debit/credit card for purchasing some item, the merchant has to pay some fees (1%-2%) to the Bank or the rental fees for the swipe machine. The charges goes out of their own pocket, as the cost of running the business and convenience of taking the payments (more customers will come, if card payment is there). If its a small payment like Rs 500 or Rs 1000, then its a charge of Rs 10 or Rs 20, which is fine. But when it becomes a payment of lets say Rs 30,000 (imagine buying laptop or iPad), then its around Rs 300-600 and to save that big charges, they discourage debit/credit card payment.   They often ask customers to pay by CASH and point them to nearby ATM. Almost always, customers could not refuse, because they have already made the buying decision, and dont want to argue for the small charge, and a lot of times, they finally believe that may be its not illegal, and finally give the CASH even if they do not want, or just allow the merchants to charge additional 2% charges. But, as per RBI, its not a fair practice, because merchants already have agreed in the agreement with the card swiping machine bank that they will not charge anything extra from the customers. Here is one example of asking for 2% extra fees by some Geeta Ramani on rediff website My worst experience was when I intended to purchase a Tata Sky card worth Rs 1000. The shopkeeper said 2.5% = 25 rupees extra. I told him - you give 10, I will give 15 rupees. He spoke quite roughly - hum kyon den? I told him it was because he was supposed to pay the bank, not I, and that I was doing him a favour and not the other way round. He said he did not earn anything from the transaction. Anyway, I did not give in. I didn't purchase from him and purchased the same from Indiaplaza instead online without any transaction fee What you should do, if Shopkeeper does not agree ?   RBI has clearly asked all the banks to break their relationship with those merchants who are practicing this. So, when any merchant asks you for extra 2% charges and even after the debate they do not agree, you can complain to the RBI about this and also complain to the bank. Each Bank has a "Merchant Services" section on their website and when you mail them or complain in personal to their branch, mention that you want to complain about Merchant Services. .   But When you take this step, at-least some merchants might fear the consequences and oblige!, but now the problem is how many people will go to this extra mile . It would require some time and effort from your end.   So next time you are asked to pay extra 2% on debit card payment, you can clearly tell them about this RBI notification. If required better take the print out of the notification and keep it with you in your wallet or as an image in your smartphone.   Have you ever faced a situation where you were asked to pay extra 2% charges on debit card payments and were pointed to a near by ATM, and what did you do in that situation, please share !   Happy to Help                                                                                                           X+  V. Meenakshi Sundaram Qualifier : 'CII (Award)' The Chartered Insurance Institute, London Wealth Creating Consultant & Professional Agent Life Insurance Corporation of India The Oriental Insurance Co Ltd, licsundaram....@gmail.com     93444 57575

[kinkar]

Thanks
Kikar Bhattacharyya

Sent from Rediffmail on Android

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[Ajay Jain MDRT USA Qualifier LIC Mediclaim Overseas Insurance]

Dear All

What is the completion date of cases done till 30 sept 2013.

I have done 2 cases today for 1 Crore Sum assured each, Payment Deposited today, medical will be done around 30 sept or 1 st oct. 

Till which date these cases have to be completed so that Service tax relaxation can be enjoyed by the policy holder

Kindly give information reg this 

Thanks

Ajay Jain (Cm Club member, MDRT Qualifier)

LIC Model town Branch 123

Mob : 9136145284

[Sanjeev Sharma]

Dear all

             In our chandigarh area ALL doctors FMR { General medical }QUOTA is over

Now our query is that CAN WE DO INSURANCE TODAY & in Keening { TYPING THE CASE }

we mentioned doctor"s CODE for medical purpose and later in October when they got fresh QUOTA

we arange FMR & submit the case is that proses is ok ?

REGARDS

SANJEEV SHARMA

C.M CLUB MEMBER   

---

From: Ajay Jain MDRT USA Qualifier LIC Mediclaim Overseas Insurance <jainaj...@hotmail.com>
To: "liafis...@googlegroups.com" <liafis...@googlegroups.com>
Sent: Saturday, 28 September 2013 12:28 AM
Subject: (LIAFICHARY:10331) What is the completion date of Payment received till 30 Sept

[pnmeghani meghani]

Dear All, I am from Pune DO 1 & here though Doctor's quota is completed Division has issued Medical Diary & Medical were done.
 
So you may request your Manager NB so that it will also work
 
Thanks
 
 U P Meghani
C. M. Club Member
MDRT
 

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Date: Sat, 28 Sep 2013 17:31:37 +0800
From: sanjeev...@yahoo.in
Subject: (LIAFICHARY:10333) WITHOUT FMR
To: liafis...@googlegroups.com

[Arvinder singh Hora]

Ask division office to anhans the limit in indore they have anhanch the limit of dr of there dec quata

[S BAALA LIC]

Dear Team,

 

In Our Chennai Division 2, We received authorized message from Divisional office, Quarter 2 (July/Aug/Sep) FMR report quota has been increased from 120 to 350 for doctors. (Usual quota is 120).

 

Regarding that, we approach a branch officials and get letter from Branch office and handover to Respective Doctors.  So, now we are doing Medical Upto 10 lakhs with local Authorized Medical Doctors.

 

So, kindly approach NB Manager in Division and help from them.

 

Thanks & Regards,
S. BAALA SUBRAMANI, MDRT (USA)., FChFP
Financial Planner & Personal Financial Advisor,
C.M. CLUB MEMBER, Wealth Manager, LIC of India,
Cell: 98407 38330 Office : 044-25737383
Email: sbaa...@gmail.com

 

From: liafis...@googlegroups.com [mailto:liafis...@googlegroups.com] On Behalf Of Sanjeev Sharma
Sent: Saturday, September 28, 2013 3:02 PM
To: liafis...@googlegroups.com
Subject: (LIAFICHARY:10333) WITHOUT FMR

 

Dear all

[Nagabhushanam Sv]

YOU CANTACT N B DEPARTMENT

From: Sanjeev Sharma <sanjeev...@yahoo.in>
To: "liafis...@googlegroups.com" <liafis...@googlegroups.com>

Sent: Saturday, September 28, 2013 3:01 PM
Subject: (LIAFICHARY:10333) WITHOUT FMR

Dear all

             In our chandigarh area ALL doctors FMR { General medical }QUOTA is over

Now our query is that CAN WE DO INSURANCE TODAY & in Keening { TYPING THE CASE }

we mentioned doctor"s CODE for medical purpose and later in October when they got fresh QUOTA

we arange FMR & submit the case is that proses is ok ?

REGARDS

SANJEEV SHARMA

C.M CLUB MEMBER   

[Nagabhushanam Sv]

YOU CANTACT N B DEPT' S V N (61R)