Paytm updated this terms and conditions to take necessary action against misuse of credit cards for money transactions through Paytm wallet.
In the last month November Paytm launched new payment platform for small merchants at 0% fee for accepting of payments at shops/establishments.
Merchants deposited amount transferred to bank accounts without any charges @ 0% and this facility also extended to personal paytm account holders to accept payment.
In a statement Paytm official said, 'We saw a disturbing trend when many users started funding their Paytm wallet with their credit cards and transferring it to the bank all for free. They were not only getting free loyalty points which effectively is free cash, but also getting access to free credit'.
It said, adding money using any other payment modes they will put 2 percent fee (including of taxes) only on adding cash to paytm wallet using credit cards.
However, the collected 2% charges will be converted to discount coupon which will be issued within 24 hours of adding money to wallet.
Paytm also said, 'This hopefully keeps unintended misuse of our platform away and as a consumer, you still enjoy our services at no extra cost'.
Let's check how the whole process works in detailed:
When will I get the gift voucher in lieu of 2% credit card fee?
- You will receive a gift voucher totaling the same amount charged to you as a fee in an email & SMS within 24 hours of adding money.
- 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 cannot use this voucher on Add money transaction.
- Gift vouchers will contain a unique promo code. When you are making any purchase on Paytm or doing a checkout from the Paytm cart, you will see a promo code field where you can apply this coupon. The amount will be given as an instant cashback post your transaction.
- For example, if you added Rs 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.
- If you are doing a purchase of Rs.10, you will get a cashback of Rs.10
- If you are doing a purchase of Rs.20, you will get a cashback of Rs.10
- If you are doing a purchase of Rs.5, you will get a cashback of Rs.5
No, this voucher can only be used in Paytm App.
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