Westside Introduces ₹49 Credit Card Fee, Know The New Rule And What RBI Says

Mumbai: Tata Group-owned retail brand Westside has introduced an additional charge of Rs 49 for customers making purchases through credit cards at its stores. The new rule came into effect on October 8, 2026, making it important for shoppers to check their bills before completing payments.

According to information provided on the company's official website, the fee applies to every credit card transaction, irrespective of the purchase amount.

How Much Extra Will Customers Pay?

Customers shopping at Westside stores will now have to pay an additional Rs 49 whenever they use a credit card to settle their bills.

The charge is fixed and does not depend on the transaction value. For instance, whether a customer purchases items worth Rs 1,000 or a higher amount, the additional fee remains Rs 49 per credit card transaction.

However, the company has not specified the reason behind introducing this charge in its notice.

Why Do Retailers Charge Extra For Credit Card Payments?

When customers make payments using credit cards, merchants may incur processing costs payable to banks and payment service providers.

This cost is commonly referred to as the Merchant Discount Rate (MDR). The payment process involves several entities, including the card-issuing bank, payment processor and card network.

Some businesses seek to recover these expenses by imposing additional charges on customers, either as a fixed amount or a percentage of the transaction value.

However, Westside has not explicitly linked its Rs 49 fee to MDR or any particular processing expense.

What Does RBI Say About Such Charges?

The Reserve Bank of India (RBI) has stated that it has not issued specific instructions governing merchant surcharges on credit card transactions.

However, this does not automatically mean every additional merchant charge is permitted. Agreements involving banks, payment companies and card networks may also be relevant.

Rules governing debit cards are different. In December 2017, the RBI directed banks to ensure merchants did not pass debit card MDR charges on to customers, effective January 1, 2018.

These instructions should not automatically be interpreted as applying identically to credit cards.

What Should Westside Customers Do?

Before paying, customers should check whether the Rs 49 charge has been added to their bills.

They can also ask store representatives about alternative payment methods and confirm whether those options attract additional fees.