Westside has introduced a ₹49 convenience fee on all credit card transactions at its physical stores, effective October 8, 2026, according to its official website.
The notice issued by the Tata Group firmretailer states: “W.e.f. 8th October 2026, a convenience fee of ₹49 shall be charged on all credit card transactions in store.”
The new charge means customers paying by credit card at Westside stores will have to account for an additional ₹49 on their purchases.
How much will customers pay?
Westside will charge a flat convenience fee of ₹49 on all in-store credit card transactions from October 8, 2026. The fee is fixed rather than calculated as a percentage of the purchase value.
Why do merchants charge extra for credit card payments?
Merchants generally pay banks and payment service providers a fee for accepting credit card payments. This is known as the Merchant Discount Rate (MDR).
The charge covers the costs associated with processing card transactions and involves various participants, including the card-issuing bank, the acquiring bank or payment provider, and the card network.
Some merchants seek to recover these costs by imposing additional charges on customers who pay by credit card. Such charges may be fixed or calculated as a percentage of the transaction value.
Westside has announced a fixed convenience fee of ₹49 for in-store credit card transactions. The retailer has not provided a separate explanation for the charge in its published notice.
What does RBI say about credit card charges?
The Reserve Bank of India (RBI) has stated that it has not issued specific instructions on the levy of charges on credit card transactions.
However, this does not automatically mean that every additional charge imposed by a merchant is permitted. The terms governing card acceptance between merchants, banks, payment providers and card networks may also be relevant.
Customers who are unsure about an additional charge can ask the retailer for clarification before completing the transaction.
Are debit card transactions treated differently?
RBI has issued specific directions on Merchant Discount Rate charges for debit card transactions.
In its December 2017 directions, the central bank instructed banks to ensure that merchants did not pass debit card MDR charges on to customers. The directions took effect on January 1, 2018.
These provisions concern debit card MDR and should not be assumed to apply identically to credit card transactions.
Westside’s announcement specifically concerns in-store credit card payments.
What should customers know?
Customers shopping at Westside should check the final bill before authorising a credit card payment and ask the retailer to clarify any additional charge.
Those who prefer to avoid the convenience fee can ask the store about alternative payment methods and whether any separate charges apply.
The introduction of the fee adds another cost for customers choosing to pay by credit card at Westside stores. Customers should factor it into their purchase decisions and check the amount payable before completing a transaction.