IRCTC bans debit card transactions for several banks: here's why

The tussle between the Indian Railway Catering and Tourism Corporation (IRCTC) and banks over sharing the portion of the convenience fees earned on customer transactions had taken a new turn. 

IRCTC has now barred certain banks from using its payment gateway for debit cards, reported the Financial Express.

Earlier, IRCTC had asked banks to share with it half the convenience fee that lenders recover from card transactions on the website.

However, the Indian Banks’ Association (IBA) has been reportedly being the mediator between the two, in order to resolve the issue.

IRCTC waived off the convenience fee of Rs 20, post demonetisation. “Every day we are losing 50,000 transactions,” a senior executive with State Bank of India (SBI) told the publication. 

“Normally, the merchant pays the acquiring bank. But, since IRCTC does not pay us, we were recovering our costs from customers and that is how it had been all these years,” he added.

Earlier this year, IRCTC had introduced pay-on- delivery service allowing passengers to book train tickets online and pay at the time of delivery.

The customer will have to do a one-time registration for availing PoD as a payment option. He or she will have to tender either Aadhaar or Pan card to avail this payment option. PoD charges shall be Rs 90 plus sales tax for transactions up to Rs 5,000 and Rs 120 plus tax for transactions over Rs 5,000. In case of refusal or cancellation before delivery, the customer will be liable to pay the cancellation and delivery charges.