Relief for ICICI customers: Bank won't charge transaction fee on card at petrol pumps

In a relief for all ICICI Bank customers, the bank has announced that it will not charge any transaction fee on card payment from Monday. 

"We are not charging any transaction fee on card payment from tomorrow," said an ICICI Bank spokesperson.

This move has come in the wake of All India Petroleum Dealers Association (AIPDA) announcing that petrol pumps across the country would not accept credit and debit card payments after banks decided to levy a transaction fee on them instead of customers. 

To promote cash-less transactions, the government had waived the Merchant Discount Rate (MDR) on fuel purchase post demonetisation for consumers. But after the expiry of the 50-day window, the banks have decided to levy a fee of 1% on all transactions done at petrol pumps. 

Earlier in the day, AIPDA president Ajay Bansal told the media that all pump owners are firm in their decision to withdraw card swipe machines from intervening midnight of Sunday and Monday.

“We are operating on a very thin margin. We cannot afford this deduction. Hence we have no other go than stop accepting debit and credit cards,” Bansal said. When pointed that the dealers are going against government directions, Bansal said they have no other option. Bansal said the decision to stop accepting debit and credit cards had been conveyed to Petroleum Ministry and Finance Ministry officials, he said.