After all, why do shops charge 2% extra for paying bills through credit cards? Know here!

When you go to the market and buy with a credit card, the shopkeeper charges you an additional 2% for the transaction. Many people don’t think much about this charge because they consider 2% a small amount.

Let us explain why this additional 2% charge is levied when a customer makes a credit card payment at the POS machine. The shop will have to pay this charge to the bank.

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Actually, when shopkeepers use the POS machine provided by the bank, they have to pay this fee to the bank. However, shopkeepers collect this charge from their customers.

Regarding this, the Reserve Bank of India (RBI) has clearly said that if a shopkeeper asks for a 2% additional charge from the customer for using his credit card, then the customer is not obliged to pay it.

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If still a shopkeeper asks you to pay 2% extra when paying by credit card, then you can complain about it to the bank.

In such cases, the bank can take action against the shopkeeper by breaking its partnership with him and also stopping him from using its POS machine.