Archive · 10 Sep 2026
Credit Card Surcharges in India: Know the Rules
Some shops may ask for extra money when you pay with a credit card.
This extra amount can be called a surcharge, processing fee, or convenience fee.
The Reserve Bank of India has not set a specific maximum for credit-card surcharges.
However, shops cannot pass debit-card Merchant Discount Rate charges on to customers.
A convenience fee must be clearly shown before the payment is completed.
For credit-card surcharges, customers should also know about the fee before paying.
If you see an unexpected charge, ask the shop to explain it and keep your bill.
You can contact your card issuer if you think the charge was applied incorrectly.
If the issue is not resolved, you can complain through the RBI Ombudsman system.
The Reserve Bank of India does not set a specific cap on credit-card surcharges.
Merchants cannot pass Merchant Discount Rate charges to customers paying by debit card.
Credit-card surcharges depend on the merchant’s card-acceptance arrangements and other applicable rules.
Any additional credit-card charge should be clearly disclosed before the customer pays.
Customers can complain to their card issuer and escalate unresolved matters to the RBI Ombudsman.
- Who
- Merchants, credit- and debit-card customers, card issuers, and the Reserve Bank of India are involved.
- What
- The article explains when merchants may charge extra for credit-card payments and how customers can challenge such charges.
- When
- The debit-card MDR directions took effect on January 1, 2018; the Reserve Bank – Integrated Ombudsman Scheme began in 2021.
- Where
- The rules discussed apply to card payments in India, including physical shops and online transactions.
- Why
- The guidance aims to clarify surcharge rules, disclosure requirements, and complaint options for customers.
Merchant flexibility
Consumer protection
Credit-card fees
Merchant flexibility
Merchants may seek to recover payment-processing costs, but whether they can impose a credit-card charge depends on their card-acceptance arrangements and applicable rules.
Consumer protection
Customers should not discover an additional charge only after paying and should be clearly informed before the transaction.
Debit versus credit cards
Merchant flexibility
The article distinguishes credit-card charges from debit-card MDR rules, which specifically prohibit passing MDR to customers.
Consumer protection
Customers may reasonably question charges that appear to transfer a merchant’s payment costs to them, especially when the fee was not disclosed in advance.
- Credit-card surcharge cap
- The Reserve Bank of India does not prescribe a specific cap.
- Debit-card MDR
- Merchants must not pass debit-card Merchant Discount Rate charges on to customers.
- Typical MDR range
- Merchant Discount Rate generally varies between 2% and 3%, according to the article.
- Disclosure
- Additional charges should be disclosed clearly before payment; convenience fees must be transparently disclosed.
- Complaint route
- Customers can first contact their card issuer and then escalate unresolved complaints through the RBI Ombudsman’s Complaint Management System.
- Ombudsman compensation
- Compensation for actual financial loss can be up to Rs 30 lakh, with up to Rs 3 lakh additionally available for time, expenses, harassment, or mental distress.