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Petrol pumps say no to card payment from today

New Delhi: Petrol pumps would refuse to accept card payments for fuel from Monday. Because of this statement general people are become very afraid.

But finally there was some relief on Sunday night. Banks agreed to defer their decision to charge 1% transaction fee on card payments at petrol pumps from Monday.

Petroleum dealers have now said they will accept cards till January 13.

At the heart of the dispute is the merchant discount rate (MDR). As in any other card transaction, the bank passes on the money to the petrol pump owner after deducting fees in the form of merchant discount rate.

The agreement between the bank and the merchant has a clause that does not allow the merchant to pass on the charge.

But petrol pumps have argued that their margins are not enough to absorb this charge.That is why dealers wants to protest against this decision.

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