Charging for transactions by Provider Company on credit cards is unfair
You may be among the customers who have complaints regarding your company providing the credit cards charging you a hefty transaction fees. On the other hand the sellers too have similar complaints. In fact, the credit card provider companies are earning benefit both ways unfair to both the buyer and the seller.
The reason is in the faulty system. For example, when an agent arranges to buy a low cost air ticket for you at say Rs.2500, he gets only around Rs.60 as his commission. Out of this again he pays Rs.50 towards transaction fees and is left with a meager Rs.10 only. Hence he has no other alternative but to charge Rs.50 from you as the transaction fees.
Profit margins are going down every day. The credit cards carry with them many lucrative offers for the customers as the Companies try to stay a step ahead of their competitors in the market. When you find ads like icici launch a new card you get attracted with various new facilities and features added to it making it one better over the old credit cards. But these gifts and offers cost them money and they have to find out some way to reimburse them.
The laws are yet to take mature shape in India and in the Financial India scenario it is the consumer who bears the ultimate burn.
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