In addition to charges imposed by banks, almost every retailers in the country (except reputed supermarkets & companies) charge the end users of credit cards an additional charge varying from 2.5% to 3.5%.
When questioned of this additional charge, retailers’ explanation is that bank deducts 2.5% - 3.5% from invoiced value in crediting their account. One state & private bank refuted this claim made by retailers. Another private bank confirmed the legality of such charge. This is really confusing. Many credit card users are not knowledgeable what retailers are claiming.
What is this drama? Do banks’ management aware of card users are facing non- ending unpleasant moments the time they consume product or service contained such an additional charge. No such experience had been encountered in other countries. Perhaps, pricing formula may be adding such a charge in such countries.
Whatever, it is the responsibility of bankers’ to figure out real terms & conditions over the credit card process in order to educate end users thereby minimizing unwanted situations with retailers. Let us see who initiates this. May be none.