OneCard Fuel Surcharge Charges

[raghavx]

Hi,

I am new to credit cards. So I got to know that if we use Credit Cards to make payments at the fuel stations. We are charged additionally. So I saw in a video that you should never use a credit card for fuel payments.

What exactly are these charges all about?

Also, I have heard that with OneCard we are not charged anything. Is it true?

Thanks in advance 🙂

 

[rjsudeep]

Not exactly true, most cards offer fuel surcharge waiver on spends above 300/400 up to 5k. So check with the card you have.

 

[ramirami]

You will have to pay the GST on the surcharge, but the surcharge itself will be waived off. So for 1% surcharge and 18% GST, if you fill Rs. 100 worth of fuel, you will have to pay 1 rupee surcharge and 18 paise tax on this surcharge, and the 1 rupee will be reversed, so you will end up paying net 18 paise more than the cost of fuel.

See Terms and Conditions, clause 8.7:
Transactions at Fuel Stations: When you use the OneCard Credit Card to pay for fuel, you will be levied a surcharge. This will be completely waived for the fuel transactions made on OneCard Credit Card. Such reversal will not include the applicable tax paid on such purchase.

Reason for charges:
Usually, when you pay by card, the receiver (seller) pays a small percentage to banks and card networks for processing the payment. For fuel and some government related transactions, this changes and instead of the seller paying, the buyer pays and the card issuers call it "surcharge" because that sounds better than card usage fees.

 

[Chaitanya_V]

New update: From 20th Feb surcharge capped at 400/calendar month.