Paytm has announced that it will now levy 2 percent fee for adding money to your wallet using credit card. Earlier there was zero percent fee for recharging your wallet using credit card. There will be no fee for transferring money to the Paytm wallet using debit card or net banking.
To avoid this misuse, we are making some changes in our 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, we 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 discount coupon for same amount which will be issued within 24 hours of adding money effectively giving you this fee back.
Paytm said it will send 2% discount coupon within 24 hours of adding money using credit card via an email and SMS however, you need to add more than Rs.250 using a Credit Card to be eligible for this offer. The 2% fee addition comes from Paytm after it said earlier this month that its customers are using their Paytm Wallets to rotate money from their Credit Cards to their bank accounts to earn Credit Card points or gaining access to free credit. Paytm further added it had to bear hefty charges when customers use credit card to card network and issuing banks.
Last year in November, Paytm had allowed money transfer to any bank account at 0% fee. In addition, Paytm has also added UPI and IMPS payment options. Currently users can pay using Credit Card, Debit Card and Net Banking.