There is an announcement by Paytm about new changes to their Paytm Wallet poloicy. This is of high importance and all should be aware off these changes, hence I decided to create this article.
Paytm gives you multiple payment options when you buy any product or pay for any utilities. Currently, Payment options that are used are Credit Card, Debit Card & Net Banking. Paytm decided to add 2 more options to their Payment Types. The two new options are UPI & IMPS methods. These options can be used when you add money to your wallet. Without a doubt, daily millions of us are using Paytm Wallet option for our daily transactions.
Extra 2% fee (inclusive of taxes) when adding money to Paytm Wallet using Credit Card
I know this comes as a shock to many, but I did foresee this. There a reason for Paytm coming with this fee. In the month of November Paytm launched a new payment platform for small merchants at 0% fee. Millions of merchants started accepting Paytm at their shops/establishments. Merchants preferred to take money to their bank accounts and as a promise to democratising payments Paytm made a transfer to bank fee at 0%. This was extended to all Paytm users as many shopkeepers/merchants also used their personal Paytm accounts to accept payments at their Shops.
Many users started to misuse this function, users started funding their Paytm wallet with their credit cards and transferring it to the bank without any extra fee. This turned out a win-win situation for all Users.
Paytm has to pay a fee to card networks or banks on each transaction is done using Paytm Wallet like any other online commerce site. Paytm has to pay huge charges when User uses a credit card to card networks and issuing Banks. Paytm lose money if User simply adds money to Wallet.
However, to avoid this misuse Paytm has made some changes in their terms. There will be no fee when you shop on Paytm or pay for any utilities using your Credit Card or any other payment option but to avoid the misuse highlighted above, Paytm will put 2% fee (inclusive of taxes) only on adding money to wallet using credit cards while adding money using any other payment option remains free. However, this 2% fee charges on credit card would be reversed in the form of a gift voucher for the same amount which will be issued within 24 hours of adding money effectively giving you this fee back. This hopefully keeps unintended misuse of our platform away and as a consumer, you still enjoy their services at no extra cost.
A gift voucher will gets sent out within 24 hours of adding money using a credit card. This change applies from March 8th. (Note: You will get a gift voucher by an email & SMS within 24 hours. You need to add more than Rs.250 using a Credit Card to be eligible for this offer)
Here are some of FAQ on this Policy change
Q. When will I get the gift voucher in lieu of 2% credit card fee?
A. You will receive a gift voucher totalling the same amount charged to you as fee in an email & SMS within 24 hours of adding money
Q. Where can I use that gift voucher?
A. You can use that gift voucher on Paytm for various services including recharges, bill payments, movie tickets, shopping, bus tickets, Air tickets & all other services on Paytm. However, you can not use this voucher on Add money transaction
Q. Will it be a promo code? How do I use that?
A. The gift voucher will contain a unique promo code. When you are making any purchase on Paytm or doing a checkout from our cart, you will see a promo code field where you can apply this coupon. Amount will be given as an instant cashback post your transaction
Q. Can you explain the value of gift coupon that I will receive?
A. For example, if you added 500 to your paytm wallet, you would have been charged 2% = Rs.10 as credit card fee. You will then get a gift voucher worth Rs.10 in your email/SMS.
Q. Can I use this gift voucher on your partner Apps/websites?
A. No, this voucher can only be used in Paytm App
Q. I add money using credit card on Uber, will I be charged 2% there?
A. No, there won’t be any charge on partner Apps including Uber when you add money using a credit card.
Q. What will be the expiry date of this gift voucher?
A. This gift voucher will expire on 31st December 2017. For some reasons, if you fail to use the voucher, you can write to us to get it extended. Reach out to us at paytm.com/care
Q. Can this voucher be used partially? If I get a voucher of Rs.50, can I use it multiple times till Rs.50 gets exhausted?
A. No, you have to use this voucher at one go. This voucher is only applicable once
Q. If I do multiple Add money transactions, do I get this voucher every time? Can I club these vouchers?
A. Yes, you will get a new gift voucher every time of the credit card fee charged to you. No, you won’t be able to club it. You will have to use them separately
Q. Do I have to pay 2% every time I do any transaction on Paytm?
A. No, this 2% is applicable only on Adding money to wallet. There will be no charge if you use your credit card to pay your bills, do recharges or make any purchase on Paytm directly. There is no credit card fee on transactions done using Paytm in our partner apps like Uber, Zomato, Big Basket, Swiggy and all other Apps that use Paytm Wallet.
Q. Is there any fee on Debit cards, Net Banking, UPI or IMPS?
A. No, all other payment modes have no fee whatsoever.
Please share your views and thoughts about this change, share this article with your friends and loved ones.