Protesting the banks’ charging 1% transaction fee on every transaction made via card, the owners of the petrol pump have decided to stop accepting card payments from Monday.
Due to the 1% transaction fee on every transaction, the petroleum dealers feel that the levy of 1 percent transaction fee erodes into their margins which are based on volumes.
The petrol stations cash-only operation is likely to hit at cash crunch of consumers. Though cash flow in ATMs and banks have improved comparatively, but has not vanished completly.
The government is trying to encourage non-cash transactions and have even announced a 0.75% cashback offer on purchase of petrol using cards. At this time, the petrol dealers’ protest this movement.
