You are here: Home » Current Affairs » News » National
Business Standard

Ticket bookings get tougher as IRCTC bars SBI, ICICI and other banks' cards

Only seven banks' cards now eligible; IRCTC's gripe: refusal on part of banks to share convenience fee

BS WebTeam  |  New Delhi 

IRCTC
Representative image

Indian Railways Catering and Tourism Corporation (IRCTC) has reportedly barred several from using its payment gateway for debit card transactions, Financial Express reported on Friday. This move was taken as the refused to share a portion of the they earned on customer transactions with
 
Many travellers prefer to book their online, making website one of the busiest portals. Currently, the portal only allows cardholders of Indian Overseas Bank, Canara Bank, United Bank of India, Indian Bank, Central Bank of India, and to buy using debit cards.

 
An email sent to remained unanswered, according to the Financial Express report.
 
Earlier this year, had asked the lenders to share half the they collected. Indian Banks' Association (IBA) is in the process of resolving the issue.
 
After the implementation of demonetisation, had waived off the convenience fee of Rs 20 it was charging who book online. A senior (SBI) official, which accounted for 35 per cent of all transactions and has been removed from the payment gateway, told Financial Express, "Every day, we are losing 50,000 transactions. Normally, the merchant pays (convenience fee to) the acquiring bank. But, since does not pay us, we were recovering our costs from and that is how it had been all these years.”

have claimed that government orders after demonetisation mandate public sector units, including IRCTC, to bear the cost of providing online to customers, called a Merchant Discount Rate. Lenders refusing to comply with IRCTC's demand say they are doing so as it violates the principles of merchant-acquiring business.

Recently, sent out an alert on its website telling to select 'multiple payment service' tab to have more credit card, debit card and internet banking payment options.

Currently, can pay for the they are buying using e-wallets, which do not charge any to the parties.
 

First Published: Fri, September 22 2017. 16:47 IST
RECOMMENDED FOR YOU