INCOME TAX9 Sept 2026
Credit card surcharge: Why do shops charge 2% extra and should you pay? | Mint
Some shops charge 2% extra when you pay by credit card. This covers the Merchant Discount Rate (MDR)—the fee merchants pay to accept cards. The RBI hasn't barred this for credit cards, but debit card rules clearly say merchants cannot pass MDR to customers. So question the charge, check agreements, or contact your card issuer if needed.
Key Statutory Highlights
- RBI has not issued specific instructions on levying charges on credit card transactions; rules may be in agreements between merchants, banks, payment providers and card networks.
- The Merchant Discount Rate (MDR) is the fee merchants pay for accepting card payments, and some shops pass this cost to customers as a 2% surcharge.
- For debit cards, RBI directions require banks and payment participants to ensure merchants do not pass MDR on to customers.
Actionable Advice for Taxpayers / Founders:If a shop charges extra for credit card payment, politely question it, check the merchant's card acceptance agreement if possible, and raise the matter with your card issuer if the charge seems unfair.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: