Nowadays the trend of digital payment has increased a lot and apps like Google Pay have given us a lot of convenience in transferring money. But now this news can cause trouble for some special Google Pay users.
Yes, now you will have to pay a service charge to transact on Google Pay. This change may surprise the users, because till now bill payment and money transfer through Google Pay was completely free. Under this new change, now a fixed fee will be charged on some payments.
Service charges for transactions on Google Pay
Some Google Pay users in Bhopal have claimed that when they paid their bills through credit or debit cards, a convenience fee was deducted on their payment. That is, if you pay electricity, water, gas, or any other utility bill through Google Pay, now you will have to pay an additional fee.
What is convenience fee?
Convenience fee is an additional fee charged from users when they make payments by card or through any other digital platform. The purpose of this fee is to cover the technical and operational costs incurred in payment processing. Google Pay has now started applying this fee on bill payments.
How much fees will be deducted?
Google Pay has not given clear information about this new charge, but users say that they are paying a fee of 0.5 to 1 percent. This fee will depend on the amount of the bill. For example, if your electricity bill is Rs 1000, then at the rate of 0.5 percent, you may have to pay Rs 5 extra.
GST will also have an impact
GST will also be applicable on this service charge. That is, you will have to pay a certain percentage of tax on the fee being paid. This may further increase the total cost of the transaction.
There is no charge for making payment from UPI linked account
If you pay through Google Pay from a UPI linked bank account, you will not be charged any additional fee. That is, people who transfer money directly from their bank account can avoid this fee. This will only apply when you pay through credit card or debit card.
Charges are already applicable on other payment platforms
This is not a new trend, as earlier digital payment apps like Paytm and PhonePe had started charging fees on bill payments. Now Google Pay has also joined this list.
What are the changes in Google Pay?
- Service charges applicable:Â Google Pay will now levy service charges on select transactions.
- Charges on payments through credit/debit cards:Â If you make bill payments through credit or debit cards, you will have to pay additional charges.
- 0.5-1 percent fee:Â Payments made on Google Pay will be charged a fee of 0.5 to 1 percent.
- GST applicable:Â GST will also be applicable on this fee.
- No charges on payments made through UPI linked accounts.
What will be its impact on users?
This could be a change for Google Pay users. While everything was free earlier, now they will have to pay an additional fee on their payments. This could cause a little inconvenience to users, especially for those who use Google Pay to make bill payments every month. However, there will be no charge for making payments from UPI linked bank accounts, so it could be a good option for those who do not want to pay by card. This service fee by Google Pay has not been officially announced yet, but the issues raised by some users have made it clear that the company has started implementing this charge.
