Even Paytm is charging Rs 1-2 extra for recharge in the name of convenience fee. Zomato/Swiggy is charging Rs 3-5 extra in the name of platform fee.
I am sure there are enough loopholes/provisions for a company to pass-on any extra charge to the customer.
MRP nowadays is becoming joke in online world. Brands just make it to 2999, 3999, 4999 and then give 0-99% discount.
There is no process to set "justified" MRP in the first place. Any company can print any MRP value and then can give up-to 99% discount.
Regarding dealers charging/not-charging extra MDR, a lot depends on their sales numbers, profit margins, location etc.
For bigger cities, sales numbers for any showroom is higher than tier 2/3 cities. For costly cars, margins are higher than entry level cars.
For top models or cars with add-ons purchased, the margins can be higher than base models, so many other factors.
So likely that dealers in prime cities/prime locations can afford to take the MDR hit themselves, whereas low sales area dealers can't afford to, in order to get sustainable profits.
After few people "fight" for not paying extra charges, companies/dealers will come up with crafty ways to add that cost somewhere, like Zomato/Paytm/IRCTC etc...
(I personally don't believe in fighting for "MDR", if the dealer accepts great, if not I make payment in the ways the dealer accepts. Peace.)
MRP has been very beneficial for Indian masses, but the obsession of Indians with discounts/deals on MRP, is increasingly making this concept a lame joke.
That's unfortunate & sad.
Online platforms like PayTM, Swiggy, ANY travel websites, etc. provide services that make life easier aka "convenience" hence they're allowed (as per RBI) to charge the convenience fee. It can be seen as a loophole to pass on the MDR but I genuinely don't mind paying such a fee because they truly make everyday things easier and streamlined (food/package delivery, 10 min grocery delivery, on-demand taxi, etc.). Ofc there are platforms that don't actually justify those but regardless, RBI doesn't consider it illegal and one can choose to refrain from proceeding forward if there are alternates (gov. platforms you can't avoid but still have to pay CF).
MRPs have always been a joke, nothing new. Artificially inflated rates only to show huge discounts have been there with anything and such prices would obviously include operational expenses and margins. It's to satisfy the consumer's mindset of getting things at discounted prices while also boost sales of the merchant/clear their otherwise capital locked inventory, it's universal.
It's not a valid argument on whether the dealer can afford or not, if they cannot afford to bear operational expenses, then they're in the wrong business. If they're in this business, then they very well understand all sorts of expenses their business will incur. You can't just say the dealer cannot afford to pay electricity bills, hence, they'll switch off all the lights in their showroom and the customer should co-operate to help them run the business...lol. They make enough margins upselling various things. Accessories for example have nice margins up to 40-50% too. They sell Sunfilm installation, PPF/Ceramic/Underbody coating, Insurance/Loan commissions which are recurring, and more -- All at an inflated prices from outside, there's everyone making money here not just the dealer, they get their cut in everything, nothing's free (not saying it's wrong, it's their business, it's up to the end customer to decide whether to go for it or not) but saying it lowers their margins hence the customer has to bear certain expenses of their business still doesn't make any sense or justify anything.
If they're so concerned about MDR eating up their margins, they can all collectively approach RBI and argue to let them pass on the MDR fully or partially. Surely RBI isn't stupid to make it illegal for no reasons.
Yes I agree we should not allow dealers to fleece us - however they can just reduce discount citing additional MDR fees (thats where my point of MRP vs discount)
They all price the products and cap their discounts taking into the account their operational expenses they incur and their margin, discounts from the manufacturer, bonuses they get for meeting sales target (from the manufacturer) and that's their business but trying to pass on the MDR on top of the agreed price is not valid, whether it's MRP or discounted price, that final price includes operational expenses, commissions, margins, etc. and usually they anyway have a ceiling limit and this is across all industries offline.
You don't get a discount telling dealer you're paying cash, hence, they're saving on 1-2% on MDR fees and that benefit should be passed on to you (sure you can argue as much with them and they'll def. create a mirage of them giving you more discounts than usual), no dealer would pass on the actual benefits of MDR savings or any and would rather keep that for themselves and still give you a discount as per their ceiling limit, likewise, the customer too should not accept over and above the price any kinda MDR fees. Also, dealers would rather have you take financing through them than pay them via cash because again they have a margin pushing you to take a loan than take cash. It's business, they're here to profit as much as they can from such a sale. Customers fall for shit thinking oh poor dealer isn't making much margins, so let me fall into their emotional trap and take on their business expense.
As for the convenience fee, that really varies from services to services online. It's a complex issue. Certain areas it's justifiable and certain it's not, obviously like with anything, all these companies make use of such loopholes, that I agree.
But convenience fee is not always charged for all sorts of transactions that uses Razorpay. It's something businesses control whether to pass on or to handle on their own. Having said that, platforms like Razorpay/Stripe, etc. do more than just process the card payment (data management, added fraud protection, handling chargebacks, compliances, card storage, security, ease of tech which streamlines the overall experience of accepting payment/integration, etc. etc.).
Like I said before, if merchants want to pass on the MDR to the end customers, they should get the rules revised by the RBI itself not illegally pass on as they please.
