Does SBI’s credit card overcharge for petrol?
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At any point of sale (POS), when using credit or debit cards at merchant locations, merchants incur a Merchant Discount Rate (MDR). This fee typically ranges between 1% to 3%; some merchants may add an extra charge of approximately 2% when accepting card payments.
MDR fees cover payments made to card networks like Visa, MasterCard and Maestro as well as your POS provider and bank that issued your card. Merchants generally face MDR costs; however, petrol stations and fuel vendors who operate with extremely tight margins often find these costs prohibitively expensive; their MDR costs might even cause them to lose money, prompting them to charge surcharges to consumers to cover those costs.
Surcharges on transactions reflect what merchants pay as Merchant Data Retrieval fees (MDR), so if you get a refund you may get some or all of it back depending on your card issuer’s policy. If these extra charges become frequent then upgrading or switching cards with more favorable terms or reducing surcharges might be wiser options.
Hey there! If you’re wondering whether SBI’s credit cards overcharge for petrol, here’s the scoop:
Fuel Surcharge Explained:
SBI credit cards do have a fuel surcharge, which is a fee added to your petrol transactions. It’s a standard practice across most banks. Typically, the surcharge is around 1% to 2.5% of the fuel amount.
Fuel Surcharge Waiver:
Good news: Some SBI credit cards come with a fuel surcharge waiver. This means you can avoid or reduce that extra fee. For example:
SBI BPCL Credit Card: Offers a 1% surcharge waiver on transactions between Rs. 500 and Rs. 4,000.
SBI Card Elite: Provides a 1% waiver on similar transactions, plus rewards points on fuel.
Benefits and Tips:
Reward Points: Some cards, like the SBI BPCL, offer reward points for fuel purchases which can be redeemed later.
Check the Cap: There’s often a cap on how much surcharge can be waived, so it’s good to know the limits.
SBI credit cards don’t overcharge for petrol if you use the right card. Cards with fuel surcharge waivers can help you save on fuel costs and earn rewards. Just be aware of the terms, like minimum transaction amounts and waiver caps, to make the most of it.
Hope this clears things up!