- Google Pay may now apply extra charges on utility bill payments via credit and debit cards.
- Users paying via UPI remain unaffected, as no additional transaction charges will apply.
- Charges range from 0.5% to 1% and include GST, depending on transaction type.
If you frequently use Google Pay for payments, there’s an important update for you. GPay has introduced additional charges for certain types of transactions, specifically when using credit or debit cards for bill payments. This change may impact users who regularly pay for services such as electricity, gas, and other utility bills through Google Pay.
Previously, these transactions were free of any additional charges. However, as per reports from The Economic Times, Google Pay has now started imposing a convenience fee on such payments. This move aligns with similar policies adopted by other digital payment platforms like PhonePe and Paytm.
Google Pay Extra Charges to Pay on Bill Payments
According to reports, Google Pay users who make payments using credit or debit cards will now incur processing fees. These charges generally range from 0.5% to 1% of the transaction amount, along with GST. However, UPI transactions remain free, ensuring users can still pay without additional costs if they opt for UPI-based payments.
Here are some key points about the charges:
- Applicable on: Credit and debit card transactions for bill payments.
- Charge percentage: 0.5% to 1% of the transaction amount.
- Includes: GST, which is added to the total fee.
- Not applicable on: UPI payments, which continue to be free of charge.
Additionally, it has been noted that RuPay card payments will also be subject to these charges. In some cases, certain bill payment categories may not allow card transactions at all.
| Aspect | Details |
|---|---|
| Applicable On | Credit and debit card transactions for bill payments. |
| Charge Percentage | 0.5% to 1% of the transaction amount. |
| Includes | GST, which is added to the total fee. |
| Not Applicable On | UPI payments (remain free of charge). |
| Payment Method | Credit cards, debit cards, and RuPay cards. |
| Exemptions | Some bill payment categories may not allow card transactions at all. |
| How Charges Are Applied | Convenience fee is automatically added to the total bill amount. |
| Failed Transactions | Convenience fee is refunded to the user’s payment source (may take a few days). |
| Additional Notes | Charges apply per transaction, even if paying for someone else’s bill. |
How Will the Charges Be Applied?
When a user initiates a bill payment through Google Pay using a credit or debit card, the convenience fee will be automatically added to the total bill amount. The final payable amount, including the extra charge, will be displayed on the payment screen before confirmation.
For those using UPI payments, there will be no extra cost, and the payment process remains unchanged. Google Pay has clarified that the applied fee depends on multiple factors, such as bill amount, payment method, and transaction conditions.
What Happens if a Transaction Fails?
If a bill payment fails, any convenience fee deducted will be refunded back to the user’s payment source. However, this process may take a few days to reflect in the user’s account. Additionally, if a user is paying for a friend or family member’s bill, the same charge will apply, as it is calculated per transaction.
Google Pay has started implementing extra charges for bill payments made through credit and debit cards. While UPI payments remain free, users opting for card transactions should be aware of the additional processing fees. It’s advisable to review payment options before proceeding with transactions to avoid unexpected costs.
FAQ
Does Google Pay charge for UPI payments ?
No, UPI payments remain free with no extra charges.
Which transactions will have extra charges ?
Utility bill payments made via credit and debit cards.
How much is the charge for card payments ?
The charge ranges from 0.5% to 1% of the transaction amount, including GST.
Will the charges apply to RuPay card transactions ?
Yes, RuPay card payments are also subject to the convenience fee.
What happens if my payment fails ?
If a payment fails, any deducted charges will be refunded to the original payment method within a few days.
