Debit card transaction charges impact Vizag IT business
Prior to demonetization in past few months bank customers were allowed to withdraw money free of charges from their nearby ATMs and every transaction beyond limits was charged.
Talking to few local IT dealers in Vishakhapatnam, a major concern was the ongoing hangover of demonetization. There is still no cash flow in the IT market of Vizag and the market slowdown still continues.
There is no as such sales happening as people in the region are not ready to spend on IT products also card swiping fees is the major reason of no purchase says P.D Christopher of AARON Technologics, a local IT dealer in Vizag.
Few banks have restored transaction fees for debit card payments because of which people are now not ready to swipe their cards unless it’s really important for them.
The term swipe fees, also known as interchange fees, refers to the hidden cost paid by merchants to card-issuing banks and credit card companies for processing credit card and debit card transactions.
P.D Christopher also shared, “Swiping charge is a major problem among the customers nowadays. I feel if we are as a nation pushing digitalization then our government should also improve such facilities for the citizens so that we as dealers and they as customers should not be facing such barriers in the digitalization way. We are also stuck with our own restraints, can’t help it.. The margins are less thus we can’t avoid such transaction charges from our side”.
Nanaji of ARUNA Computers also shared, “Cash back schemes from the platforms like Paytm (online portal) is also creating problems for retail dealers like us. The market in our region is already going through many ups and downs. Its taking a lot