We may then blacklist them (the outlets) and remove our terminals.'' An official at another card-issuing bank adds, "It is a bad practice. If someone charges 2% above MRP, you should report it to a consumer forum, irrespective of the value.''

This 2% rule, however, is relaxed for railway tickets and at some petrol pumps, says G V Giddappa, general secretary at Credit Card Holders' Association. In case a petrol pump has a tieup with a card, the amount is charged back into the card, a banker adds.

The senior banker asks, "Railways can save on the fee, but merchant establishments can't. How fair is that?'' Ultimately, though, it is the consumer who gets inconvenienced and ends up paying more. Bankers say it is mostly shops with "wafer-thin'' margins who charge extra to avoid additional "discount''. Also, grey market shops and certain jewellery showrooms discourage card use to avoid taxes, they add. The charge works as a deterrent. Consequently, cash purchases mean more unaccounted transactions.

Most times, shops are upfront about such a charge. However, in case a shop fails to inform the consumer or the consumer notices the charge on the payment slip, most banks do not reverse the charge. As a bank official says, "The overcharging has been done by the merchant and not the bank.''