BHOPAL: POS (Point of Sale) machines may make lives easier for buyers but the sellers are reluctant to install them as they have to pay charges to the bank for every transaction.
Other factors are also coming in the way of traders opting for swipe machines. Saurabh Patkar, POS coordinator, ICICI Bank said that for every payment received below Rs 2000, the shopkeeper pays 0.75 per cent and one per cent for payments above Rs 2000 to the bank. “These rates differ from bank to bank and also depend on the debit card used. Credit card rates are different. Every bank has its own fixed charges on the current account, on which swipe machines are issued by the banks. Technically, the seller pays more than the buyer and also the seller can charge this money from the buyer but they will have to inform the buyer before payment. No one charges from customers though”, he said.
The small shopkeepers of Bhopal are reluctant to install the machines. They are more amenable to using payment gateways like Paytm.
Narayan Sharma, owner of Mewad soda shop
“I have started using paytm since demonetisation because smaller denomination notes were not available for love or for money. This has actually saved me the pain of refusing customers without change. Paytm has given this option for free and it is proving beneficial to me. If I go for swipe machine, I will have to pay charges for every payment. The maximum rate for a beverage at my shop is Rs 110, starting from Rs 20. Paying to the bank for every drink would cost me a lot”.
Satya Singh, manager at Milan Restaurant
“There should be some relaxation in payments to banks for using swipe machines. We have to bear the charges of the bank. We cannot charge from the customers because doing so means losing customers. We had to get swipe machines because problem of change was affecting our business. Our business is back to normal now. Before this, many customers asked us if we accept cards. Now it is easy to get payments”.
Shaligram Uikey, owner of general store
“I don’t have swipe machine and I don’t need it. Bank officials did come to me, offering to install swipe machine for free but I refused. I don’t know how to use it and also I will have to pay monthly charges for the machine. I have a small general store and my margin of profit is very low. I cannot afford swipe machines”