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All about Debit and Credit Card Swipe Machine Charges in India


All about Debit and Credit Card Swipe Machine Charges in India

With more and more customers moving to digital payment methods, technology for accepting such digital payments has become a necessity for businesses today. It does not matter what the size of your business or your company is; customers have started preferring digital payment methods more, thanks to the ease of use.

Cards are one the most used digital payment methods, and one of the ways to accept such payments is by using a card swiping machine. Let us learn more about those devices and examine card swipe machine charges in India.

What Is Card Swipe Machine And How Does It Work?

What is a credit card swipe machine?

As mentioned above, a card swipe machine accepts credit or debit card payments from customers. Most modern devices can get all types of credit or debit cards. Having a credit card swipe machine will enable you to reach more customers.

Credit card swipe machine charges

You, as a merchant, might have to bear some charges when you own a credit card swipe machine. These charges include:

Transaction charges

You will have to pay these charges to the swipe machine provider for every card transaction. This could be a percentage of the transaction value or a fixed amount per transaction, according to the terms of your bank.

For instance, if your bank charges 2% as a transaction fee, you will need to pay Rs. 20 to the bank if a customer pays you Rs. 1000 using the card. At the same time, if your bank charges you a fixed price, you will only need to pay that price regardless of the transaction amount.

Annual maintenance charge 

The bank will also charge you an annual charge for the maintenance and support related to the machine. This charge could differ for different machines. For instance, a GPRS / Android / MPOS machine could have charges of Rs. 1000 per year, while a PSTN machine could have charges of Rs. 2000 per year. At the same time, UPI QR only machines could cost you less.

Low throughput charges

These are charged when the total number of transactions or transactions is lower than a specific limit. According to industry standards, if you had no transactions done in a month, you could be charged Rs. 350. For transactions up to a total of Rs. 10,000, you could be charged Rs. 250 and for transactions up to a sum of Rs. 25,000, a charge of Rs. 150 could be collected from you.

  • Lost terminal charges 

Your service provider may charge you if you lose your device too. For GPRS / Android machines, this is usually Rs. 12,000. The charge is Rs. 9000 for PTSN and Rs. 6000 for MPOS machines.

Apart from these, there could be charges related to damage repairs, deinstallation, etc., according to your bank’s terms and conditions. Accounting for the charges mentioned above as well when you budget for a new credit card swipe machine could ensure things go smoothly financially.

Susan M. Davis

Tv expert. Proud web nerd. Friend of animals everywhere. Hipster-friendly coffee trailblazer. Spent college summers short selling clip-on ties in Hanford, CA. Spent two years developing jack-in-the-boxes for fun and profit. At the moment I'm merchandising human growth hormone in Prescott, AZ. Spent several years implementing birdhouses for the underprivileged. Had some great experience lecturing about spit-takes worldwide. What gets me going now is building chess sets in the aftermarket.