After announcing that it would start charging a 2% fee for recharging via credit cards a few days back, PayTM is now saying that it is suspending its decision. PayTM said that it was suspending this decision as it was causing inconvenience to a large number of users who were using their credit cards for genuine transactions. However, it said that it will continue to build a series of features to curb such misuse.
The company had earlier said that it was suspending the 0% transfer to bank fee for merchants because it noted that some users were recharging their wallets using their credit cards, then transferring it to the bank for free. PayTM said that this was causing losses to the company as it pays a fee to card networks or banks whenever anyone uses their card. “Our revenue model requires users to spend money within our network and we make money from the margins available to us on various products/services we offer,” PayTM stated.
PayTM had initially offered 0% fee when transferring money from the user’s wallet to their bank accounts till January 31. Following that day, it started charging customers a 2% fee. However, the company said that once it launches the PayTM Payments Bank, users would be able to transfer money from their wallets to the payments back at 0% fee, forever.