Paytm levies 2% fee on adding money via credit cards. This is how it is compensating

Next time you recharge your Paytm wallet through credit card, be ready for a 2% fee. The digital wallet will levy a 2% charge for adding money in the Paytm wallet using credit cards but it will also give a cashback of the equivalent amount.

Paytm announced this in a bid to check users who were using Paytm to get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost.

If you are adding money to the Paytm wallet through netbanking and debit cards, no charges will be levied.

"Paytm pays hefty charges when you use your credit card at card networks and issuing banks. If a user simply adds money and takes it to the bank, we lose money,” stated Paytm in a blog.

Credit card users transacting on the Paytm marketplace, booking tickets and paying utility bills on the platform will not be charged any fee.