Petrol pumps protest banks' transaction fee; not to accept card payment from Monday

New Delhi: Petrol pump owners are protesting banks' charging 1% transaction fee on every transaction made via card, and have decided to stop accepting card payments from Monday.

The petroleum dealers feel that the levy of 1 percent transaction fee erodes into their margins which are based on volumes.

The petrol stations cash-only operation is likely to hit at cash crunch of consumers. Though cash flow in ATMs and banks have improved comparatively, but has not vanished completly.

The petrol dealers' move comes at a time when the government is trying to encourage non-cash transactions and have even announced a 0.75% cashback offer on purchase of petrol using cards.