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Being charged MDR for buying vehicles, did you face it?

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xfactcc

xfactcc

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I have read in multiple threads here that when people visited dealerships to buy their next bike, scooter or car on CC, they were told to pay MDR fees in cash or UPI without receipts.

These are presumably large dealerships that can easily efford the 2% fees but choose to pass it on to their customers anyway.

Did you face such issues during your purchase? Were you able to convince the dealer to not charge MDR through negotiation or though complaining to the vehicle company etc.

Please share your stories. Need the tips for my next potential purchase.
 
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When we swiped the card to pay for our car, the dealer was asking 2.5% charges added in the card swipe. We said but during booking time the amount you did not charge so why now. Anyway we had a good relation with the dealership sales and service department. They waived off the 2.5%. They were more shocked that someone wanted to purchase on card 😂
 
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Cosmicgaze said:
When we swiped the card to pay for our car, the dealer was asking 2.5% charges added in the card swipe. We said but during booking time the amount you did not charge so why now. Anyway we had a good relation with the dealership sales and service department. They waived off the 2.5%. They were more shocked that someone wanted to purchase on card 😂
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Actually merchant is charged around 1.5% by bank. When they ask above that we should discuss with them. Sometimes merchant want to make additional 1% or 1.5% profit by charging customer 2.5% or 3%.
 
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NikunjP said:
Actually merchant is charged around 1.5% by bank. When they ask above that we should discuss with them. Sometimes merchant want to make additional 1% or 1.5% profit by charging customer 2.5% or 3%.
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I saw a place asking 4%

Other day I wanted to buy a battery for my laptop parts shop told the price when I gave card he said 2% card charges plus 18% gst

Some restaurants they just hide the card swiper and ask cash not even upi
 
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xfactcc said:
I have read in multiple threads here that when people visited dealerships to buy their next bike, scooter or car on CC, they were told to pay MDR fees in cash or UPI without receipts.

These are presumably large dealerships that can easily efford the 2% fees but choose to pass it on to their customers anyway.

Did you face such issues during your purchase? Were you able to convince the dealer to not charge MDR through negotiation or though complaining to the vehicle company etc.

Please share your stories. Need the tips for my next potential purchase.
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I would say use Rupay cc via UPI - have say 2-3 rupay credit cards and pay via UPI - so atleast 1-2 lacs amount can be covered. Atleast bike/scooty less than 2 lac can be bought, not car though.

Haven't tried this myself just a thought. Be careful of the limits used to avoid card blocking.
 
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Shrinit Padwal said:
I would say use Rupay cc via UPI - have say 2-3 rupay credit cards and pay via UPI - so atleast 1-2 lacs amount can be covered. Atleast bike/scooty less than 2 lac can be bought, not car though.

Haven't tried this myself just a thought. Be careful of the limits used to avoid card blocking.
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they are anyways making profit in lakhs on a car if they are making money then they should accept any form of payment without charging any fees.
 
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CREDITDATA said:
The money is in service and not sales for dealers. Govt is making the most money https://www.udayavani.com/english-n...toyota-earns-just-40k-on-sale-of-one-fortuner

You can try ackodrive.com for good deals on cars
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The manufacturer sells the car at a price lower than the ex showroom to the dealer. dealers have some wiggle room in there to offer some peanut discounts. most of their earning are from value added services(which they keep pushing a lot) and labour rates.
 
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xywowowvw said:
they are anyways making profit in lakhs on a car if they are making money then they should accept any form of payment without charging any fees.
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Not true at all! The margins are abysmal and it's all about volumes. That's why you see many dealerships come and go. I personally know many people in this industry. The majority of their income is from after-sales. This may surprise you but luxury car dealers have it the worst. The amount of money they have to pool in to run their operations, and to source inventory is just ridiculous. The biggest challenge is to properly manage their inventory. I've received almost 20% off on brand-new cars that were just stuck as inventory. The GM explained how this was a loss they would be incurring on the sale. Sure they have some winning products, but that will be limited to a handful of car models where people book their cars and anticipate the delivery later(and the dealer doesn't have to hold the inventory).
 
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I'm trying to make a charge back claim for the additional fees of 2% charged by dealer. Image attached for the entire story. Will I get a refund of the said fees. ICICI gives a dumb response for the complaint that I made.
 

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Keep escalating until you reach RBI BO. Attach convincing proof that they overcharged you above invoice. There's a RBI guideline that merchants cannot recover MDR from customers, cite the guidelines. Say that they charged the fee in terms of some card usage fee, which you didn't understand and thought legitimate hence paid, later you found out it's not legit and thry recovered MDR from you hence complained. Let's see how that goes.
 
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sxchzy said:
i

dont think the numbers are right 40k profit on a 18L isnt sutainable they would be bankrupt
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Actually that is way more than average. Even for something like fortuner dealership gets around 25-40k. They earn mostly on accessories, insurance, service and in that order. Also the premium they charge to skip waiting list.
Most money goes to govt.

And Maruti, Hyundai dealerships get even less. As the brand drives demand not promo by dealership. If they earn like you think, there would be a lot of billionaire in india. Just look at how many cars your local Maruti/Hyundai showroom sells.
 
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Praveen05 said:
I'm trying to make a charge back claim for the additional fees of 2% charged by dealer. Image attached for the entire story. Will I get a refund of the said fees. ICICI gives a dumb response for the complaint that I made.
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You need to prove that you were charged more just because of mdr. So you need to show bill and card swipe amount are different.
You can complain to rbi but you are complaining against the dealership not the bank. I know some cases where bank have put penalty on merchant for charging mdr. Some even take back pos machine.
It is called merchant discount rate not consumer discount rate for a reason.
 
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