Extra money on card payment


Recently I went for a purchase and the merchant told me an additional 2% will be charged on even a debit card swap. Is this normal?


Definitely not normal and the merchant is totally in the wrong. In fact the government is promoting cashless economy by promoting usage of cards. The Reserve Bank of India has also issued a circular clearly mentioning that any surcharge on debit card transactions is totally illegal. A copy of the Reserve Bank of India’s circular can be found on the website of RBI.


Hi Sohini,

This is not normal. The RBI has clearly stated that no shopkeeper or merchant can charge an extra 1-2% on payments done via Debit Cards. Merchants have to bear the cost themselves and pay the same to the banks. This charge cannot be passed on to the customer. Should any merchant levy such charges, you can raise a complaint with your bank or the RBI.

Team BB