Convenience fees are assessed by Google Pay when paying bills with credit or debit cards. Why and other options
HighlightsUtility payments for things like fuel, water, and electricity are subject to the Google Pay convenience fee.
This fee is not applied to UPI payments you make to others.
These fees are also collected from the user by PhonePe, Paytm, and other platforms.
With over 37% of the Indian market, Google Pay (GPay) is a prominent UPI (Unified Payment Interface) payment provider; hence, any increase in convenience fees makes headlines. The company already charged Rs 3 for cellphone recharges, and now there will be a cost in addition to relevant taxes when using the app to pay bills with debit and credit cards. The specifics are as follows:
GPay levies fees.
According to Economic Times, if you use a debit or credit card to pay your bills through Google Pay, you will be charged 0.5–1% plus GST.
This covers fuel, water, electricity, and other bill payments. Several variables, such as the mode and amount of payment, would affect the fee.
These costs cover the processing of debit and credit card payments and provide a smooth payment experience. According to a PWC estimate, the processing fee for UPI companies is approximately 0.25 percent of the transaction value. As a means of generating income, the user is now charged for the processing expenses (plus other fees).
The exact date that Google began charging users these fees is unknown.
According to Google, "When making a payment through the Google Pay app, the most recent applicable fee is always displayed first." By visiting the Transaction History section (which includes the bill payment amount), you can also review these fees at a later time.
The transaction fee will be reimbursed within a predetermined number of days if your bill payment is unsuccessful.
Please take note that this fee is not applied to UPI payments you make to others.
State-owned BHIM also charges a fee for Google Pay alternatives. Another option to think about is UPI, which says it doesn't charge any fees for utility payments.
The largest provider, PhonePe, also levies platform and convenience fees. Since it may vary depending on the transaction, we are unable to provide an exact percentage or amount.
According to ET, Paytm charges between Rs 1 to Rs 40 to settle utility bills.
When paying bills with a credit or debit card, Amazon Pay charges a convenience fee of 1-3 percent (tax included).
This fee is not applied to UPI payments you make to others.
These fees are also collected from the user by PhonePe, Paytm, and other platforms.
With over 37% of the Indian market, Google Pay (GPay) is a prominent UPI (Unified Payment Interface) payment provider; hence, any increase in convenience fees makes headlines. The company already charged Rs 3 for cellphone recharges, and now there will be a cost in addition to relevant taxes when using the app to pay bills with debit and credit cards. The specifics are as follows:
GPay levies fees.
According to Economic Times, if you use a debit or credit card to pay your bills through Google Pay, you will be charged 0.5–1% plus GST.
This covers fuel, water, electricity, and other bill payments. Several variables, such as the mode and amount of payment, would affect the fee.
These costs cover the processing of debit and credit card payments and provide a smooth payment experience. According to a PWC estimate, the processing fee for UPI companies is approximately 0.25 percent of the transaction value. As a means of generating income, the user is now charged for the processing expenses (plus other fees).
The exact date that Google began charging users these fees is unknown.
According to Google, "When making a payment through the Google Pay app, the most recent applicable fee is always displayed first." By visiting the Transaction History section (which includes the bill payment amount), you can also review these fees at a later time.
The transaction fee will be reimbursed within a predetermined number of days if your bill payment is unsuccessful.
Please take note that this fee is not applied to UPI payments you make to others.
State-owned BHIM also charges a fee for Google Pay alternatives. Another option to think about is UPI, which says it doesn't charge any fees for utility payments.
The largest provider, PhonePe, also levies platform and convenience fees. Since it may vary depending on the transaction, we are unable to provide an exact percentage or amount.
According to ET, Paytm charges between Rs 1 to Rs 40 to settle utility bills.
When paying bills with a credit or debit card, Amazon Pay charges a convenience fee of 1-3 percent (tax included).
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