If you frequently use Google Pay for small transactions, you might have to start paying extra fees. A recent report indicates that Google Pay has begun applying a convenience fee on bill payments made through credit and debit cards, which were previously free of charge. These charges specifically apply to essential services such as electricity and gas bills. The fee can range between 0.5% and 1%, with GST also included in the total cost. However, payments made through UPI will remain exempt from these charges.
How Much Are the Charges?
According to an Economic Times report, users paying their bills via credit or debit cards on Google Pay will now incur a processing fee. Competing platforms like PhonePe and Paytm already impose such charges. The fee varies between 0.5% and 1%, depending on the transaction amount, and GST is applicable in addition to this charge.
Moreover, this charge applies to Rupay card transactions as well. Additionally, certain bill categories will no longer support card payments.
How Will the Fee Be Applied?
When making a bill payment through Google Pay using a credit or debit card, the convenience fee will be automatically added to the total bill amount. However, if you opt to pay via UPI, no extra charges will be imposed. The amount of this fee depends on various factors, including the total bill amount, the payment method (credit or debit card), and other transaction-specific terms.
Each transaction will incur this fee separately, irrespective of the type of bill being paid. Google Pay ensures transparency by displaying the exact convenience fee on the payment screen before confirming the transaction. Additionally, users can check the charged fee in the transaction history section of the Google Pay app.
What Happens If a Payment Fails?
In case a payment fails for any reason, the total amount, including the convenience fee, will be refunded to your account. However, the refund process may take a few days to complete. Even if you are paying a bill on behalf of a friend or family member, this convenience fee will still be applied. Since the fee is charged per transaction, it will be imposed regardless of whether you are paying your own bills or someone else’s.
With these new changes, users need to be mindful of the payment method they choose while using Google Pay to avoid unexpected additional charges.