In most cases, this would work, as the extra charge would be shared by you and the merchant. If the merchant is ready to reduce the charges, then you might be willing to pay a small fee to go ahead with the transaction. The best option for you in such a situation would be to tell the merchant that you are aware of RBI’s regulations and can make a complaint with the bank to get the merchant blacklisted. What would you do if you have to buy something urgently and do not have cash in your account to withdraw from a nearby ATM? Chances are that you would give in to the merchant’s demand for a 2% fee for using your card. There are cases when a merchant tries to pass on the 2% expenditure to the customer, even at the risk of getting the business blacklisted by the bank. However, we do not live in an ideal world. Therefore, in an ideal scenario, it is clear why the merchant should not be charging customers for using the POS machine. When a customer uses credit cards or debit cards, the merchant is assured of getting his money immediately after the transaction is approved. So, even if we were to keep RBI regulations aside for a moment, common sense says that having a POS machine is in the best interest of the merchant. Technically, merchants can accept cheques, but they hardly do, because of the fear of these cheques being dishonoured. When a shop let’s their customers pay using cards, it sells more than what it would have with only cash purchases. In this scenario, it works to a merchant’s advantage to have a POS machine installed. Nowadays, with the proliferation of POS machines and ATMs, people do not generally carry a large amount of cash when they go shopping. Why Merchant Is Not Liable To Ask For Credit Card Swiping Charges? Advanced systems can even personalise coupons and offers for customers at the checkout counter.Inventory management, customer management, and loyalty programs are additional features that can be incorporated into a POS system, depending on your business needs.While some POS systems are exclusively for Apple or Android, it's essential to choose one that meets your platform preference. Most POS in credit card systems cater to both Apple and Android platforms, allowing retail staff to ring up purchases anywhere in the store or servers to take orders and payments at the table.Mobile checkout has become easier with the availability of mobile applications for point of sale (POS) systems. Key Features & Benefits of Digital POS Services RBI adds that any such instance can be used as a strong argument by the bank to terminate its POS-linked relationship with such merchants. Such fees are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants…" In the RBI's own words: "…merchant establishments levy fee as a percentage of transaction value as charges on customers who are making payments for purchase of goods and services through cards. But some merchants try to recover this charge from customers. Ideally, these charges are to be borne by the merchant as a part of the cost of running the business, and in particular, for having the convenience of taking payments through a POS. When you swipe your card on a POS machine, the merchant has to pay a small percentage (about 2%) as rental fees to the bank for using the POS machine. Before even getting into the details of why merchants do this, what you need to know is that this practice is definitely wrong and that there are RBI regulations that allow penalizing such merchants by blacklisting them. If you regularly use credit cards for shopping, the chances are that every once in a while, you have been asked to shell out an extra 1% or even 2% at POS (Point of Sale) counters for using your card.
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