Petrol pump won't accept credit and debit cards from midnight

Cashless transactions have gone up at petrol pumps since the government's decided to ban Rs 500 and 1000 notes on November 8.

In a sudden move, petrol pumps across the country have said that they won’t accept credit or debit cards from midnight as the banks are levying an extra harge on these transactions. According to the All-India Petroleum Dealers’ Association (AIPDA), this will apply to cards from HDFC, Axis Bank and ICICI.

With the cash crunch yet to ease, the decision by petro-dealers is expected to hit the consumers as well the government’s efforts to push cashless transactions.

Speaking about the decision, Anurag Narain, President of Delhi Petrol Dealer Association, said “From tonight we will not be accepting any credit or debit card of any bank.”

“We want to help the government in the digital and cashless drive. Our margins are already less. We want them to compensate us,” said Ajay Bansal, President AIDPA.

The All India Petroleum Dealers’ Association has also written to Union Finance Minister Arun Jaitley, saying “HDFC and other banks” were levying the extra charge and since there has been no word of passing the charge to consumers, the dealers will sustain a loss.

The association also said that the move will cause huge inconvenience to customers but they have decided to go ahead of with their decision since they have no option.

Cashless transactions have gone up at petrol pumps since the government’s ban on 500 and 1000 rupee notes on November 8. And with the government pushing for cashless transactions, there have even been calls to stop the 2% fees that the banks levy on credit card transactions.