Paytm refutes reports of 1% fee for transactions, says service still free

According to the company, there have been few merchants like educational institutes or utility service providers who do not absorb credit card charges and expect customers to pay the same

Digital payments company Paytm on Monday refuted reports that it is going to charge users extra amount for digital transactions on its platform.

"We would like to clarify that Paytm app/payment gateway owned by One97 Communications Limited does not charge or levy any convenience/transaction fee from our customers on using any payment method which includes cards, UPI, net-banking and wallet.

"Paytm customers will continue using all the services available on the platform without any fee," the Noida-headquartered company said in a statement.

The ET report on Sunday said that Paytm is going to allegedly charge 1 per cent on payments via credit cards, 0.9 per cent for debit cards and up to Rs 12-15 through net banking and UPI-based methods.

According to the digital payments company, there have been few merchants like educational institutes or utility service providers who do not absorb credit card charges and expect customers to pay the same.

"In such cases, we recommend our users to pay through their debit cards and UPI to avoid these charges. We would like to reiterate that these charges aren't levied by Paytm in any scenario," said the company, adding that it does not have any plans to levy any such fee in the future.