India's allergy to credit cards

It is amazing that in the 21st century, when all the countries of the world are trying to modernize themselves and adjust to the present day needs and standards, whether it is in the technological areas or economic areas, India is still sticking to its traditions of "cash only" for business transactions.

I am talking about acceptance of credit cards for business transactions. First of all, most smaller businesses in India simply DO NOT take credit cards as a form of payment. Some bigger businesses, which accepts credit cards, ONLY accepts credit cards issued by an Indian bank. But they pass on the merchant fee (usually 2.5%) levied by credit card companies to the customers! That means if you buy something from them worth Rs.100, you pay only Rs.100 if you pay by cash. But if you pay by credit card, they will charge Rs.102.50 to your credit card and they think it is normal! (Thank God, really big and international companies such as Sheraton or Hyatt Regency Hotels of India, accepts international credit cards and they don't charge you 2.5% extra.)

Wake up India. Acceptance of credit cards are a must in today's business world. And the 2.5% you charge extra for credit cards payments is supposed to be absorbed by you, not the customer because it is called "merchant fee" not "customer fee".

In advanced countries like America, even taxi drivers accept credit card payments and they DO NOT charge you anything extra beyond what the meter says! (Tips is, of course, up to the customer.)

Shoban Sen