Submitted by business_centrik on 09/01/2017
Hours after deciding to refuse card payments at fuel pumps from Monday to protest some banks levying the Merchant Discount Rate (MDR) for purchases, dealers deferred their decision till January 13. They argued that the levy of 1 per cent and between 0.25 and 1 per cent on credit/debit card transactions was hitting their profits. “We have received an official communication from oil marketing companies that the transaction charges have been deferred till January 13. Hence, we have put off the stir,” said Ajay Bansal, president of the All India Petroleum Dealers Association. To promote cashless transactions, the government had waived MDR on fuel purchase for consumers. But after the expiry of the 50-day window, the banks have decided to levy MDR on petrol pump owners.