It has been a long while since we have talked about PayTM, but it seems the wallet company has started 2020 with various intentions to cement their bottom line. First and foremost, we wrote that PayTM Payment Bank would discontinue free lounge access for PayTM Debit Cardholders from January 2020. Now, it turns out that PayTM has also instituted new PayTM Wallet Loading Charges when you choose to use a Credit Card for your wallet loads.
As per the PayTM Payments Bank website, these new charges are listed with effect from January 1, 2020.
Loading money into PaytmAdd money to wallet – Nil*w.e.f. 1st Jan 2020;
Loading money into Paytm via Credit Card:
– Transactions less than INR 10,000 per month – NIL
– Transactions greater than INR 10,000 per month – 1.75% + GST
In case the total add money added by Credit card including current transaction exceeds INR 10,000, the entire transaction amount will be charged as 1.75% + GST
- Case 1: If the 1st transaction of add money to wallet in a calendar month is of INR 12,000/-, a fee is charged on entire the INR 12,000/-. That is, you will be charged INR 240/- extra. So total deduction shall be of INR 12,240/- and the amount added to your wallet shall be INR 12,000/-. All subsequent transactions shall be charged accordingly.
- Case 2: Multiple transactions of add money with a cumulative amount lower than INR 10,000/-. For example, 1st transaction of INR 1,000/-, 2nd transaction of INR 2,000/-. Neither of the two transactions is charged. The cumulative money added in the calendar month is INR 3,000. Therefore, any transaction up to INR 7,000/- will not be charged. However, if you initiate a transaction of INR 7,001/- the entire amount of INR 7,001/- shall be charged. All subsequent transactions shall be charged too.
- Case 3: Multiple transactions of add money with a cumulative amount lower than INR 10,000/-. For example, 1st transaction of INR 1,000/- 2nd transaction of INR 2,000/- 3rd transaction of INR 3,000/- and 4th transaction of INR 4,000/-. Neither of the four transactions is charged as the cumulative amount added is below INR 10,000/-. All subsequent transactions shall be charged.
What PayTM is doing here is to pass the credit card gateway charges to the customer, and established INR 10,000 as the fair use for their wallet load per month using a credit card. Loads with UPI, debit cards or Netbanking continue to remain free for unlimited amounts.
PayTM has not instituted load charges for credit cardholders for the first time. Back in 2017 as well, there were charges instituted to close out a manufactured spending loophole.
Many of our readers load up their PayTM wallets using their Amex cards to get through their 4/6 minimum transactions to receive their bonus points. The good news is that these transactions continue to stay below the limit set by PayTM for effecting load fees.
Have you encountered this new fee on loading your PayTM wallets in January 2020? How does this affect you?
(H/T Raghav Kalintri)