Paytm has rolled back the move of charging 2% for CC deposits on customer feedback.
On this Wednesday, digital payments company Paytm has announced that it will be going to charge a 2 percent deposit fee from customers who top up their Paytm Wallet by using credit cards. The tactic was not popular with users yet, and late Thursday night, it had rolled back the CC charge, “keeping users’ expediency in mind”.
As stated in the post proclaiming the 2 percent charge, from November, the company has been letting users take out cash of the wallet to their personal bank accounts at no charge. Normally, cashing out has engrossed a fee from wallets. At the similar time, Paytm and more wallets haven’t charged fees for placing cash into their systems. This expected that credit card customers could fill up their Wallets using the card and then handover that money back to their bank accounts, at no charge. “They were not simply getting free fidelity points which effectively are free cash but also receiving access to free credit,” the company said.
For “honest” users, the firm was giving out cashback coupons which could only be consumed through Paytm, and these originated with a big number of cautions, which appeared fairly clumsy. The company stated this, and when it publicized the rollback of the 2 percent CC charge after just a day, it declared: “At the similar time, we are aware that this move instigated inconvenience to a big segment of our users, counting those who are using their credit card for honest transactions.”
“Keeping loads of customers and merchants attention as utmost precedence, we have decided to hang up the 2 percent fees and will endure to build a series of features to curb such exploitation,” it said.
As of now, Paytm has not declared what it will be doing to avert further misuse.