What Is Fuel Surcharge Waiver On Credit Card?

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How can I avoid the fuel surcharge on my credit card?

Presently, Every time you make a fuel purchase through your card, you have to pay a fuel surcharge @ 1% (before 13 Jan 2017, it was 2.5%) subject to the minimum of INR 10. You can avoid these additional charges on fuel can be by making cash payments.

Why do credit cards have fuel surcharges?

When one pays for fuel through credit card, a fee is levied which consists of transaction fee and service tax. This fuel surcharge ranges between 1% and 3% of the cost of fuel. For instance – If one purchases fuel worth Rs. Banks offer waiver of this fuel surcharge as one of the benefits on most of its credit cards.

What is a fuel surcharge fee?

What is Fuel Surcharge? The fuel surcharge is the total cost for fuel usage. It is a contract between the shipper and another party that sets a standard rate for the fuel and how much will be paid above the base rate, and what fuel price triggers the surcharge, or no surcharge at all.

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What is the fuel surcharge on HDFC credit card?

IndianOil HDFC Bank Credit Card Fees and Charges

Type of Charge Amount
Over-limit payment 2.5% of the over-limit amount subjected to a minimum of Rs.500.
Fuel surcharge 1% of the fuel purchase amount will be waived
Reissue of lost, stolen or damaged card Rs.100
Cheque pickup fee Nil

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Can you use a credit card to pay for fuel?

Using a Credit Card at Gas Stations Most (but not all) credit card companies offer their cardholders more protection against identity theft than is available to debit cardholders. The key is to use your credit card like a debit card and only charge what you can pay at the end of the month.

What is the current fuel surcharge on credit card?

Banks have now decided to charge 1% on all credit cards and from 0.25% to 1% on all debit card transactions done at petrol pumps.

How do I get a fuel surcharge waiver?

To avail the offer, you need to make a transaction with a minimum value of Rs 50. Debit cards will also continue to give discounts. Most big bank debit cards generally offer 1 per cent fuel surcharge waiver, on fuel refill. ICICI Bank HPCL Coral Credit Card reduces fuel bill with 2.5 per cent cashback.

Why do we pay surcharges?

Surcharge is the additional tax payable over & above the normal tax. It is a conditional tax wherein if you meet the condition you become liable to pay such additional tax. A threshold limit that states any person earning beyond the limit shall have to pay an additional tax on the income earned.

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How do you calculate a fuel surcharge?

Fuel Surcharge Formula Calculation To use the formula to calculate your fuel surcharge, subtract your fuel threshold amount from the actual price per gallon and divide that amount by vehicle’s miles per gallon. This gives you your per-mile surcharge amount.

Are fuel surcharges legal?

While fuel surcharges were never enacted with legislation and are not regulated, the actions taken by Congress and the ICC in the 1970s laid the groundwork and allowed for carriers to enact fuel surcharges and develop their own formulas for how they would be applied.

Is fuel surcharge considered income?

Income Taxes The Internal Revenue Service treats fuel surcharges as revenue. Companies must include fuel surcharges they charge customers as revenue on their income statements. Conversely, companies must record any fuel surcharges they pay to as expenses.

What is the purpose of a fuel surcharge?

Fuel surcharge fees are intended to provide an average cost of fuel, to ensure the carrier does not incur losses due to the always-changing fuel costs. Fuel surcharges were initially established because agreements to ship materials is a contractual agreement between the shipper and the carrier.

How are credit card surcharges calculated?

The total amount of the credit card surcharge is $2.00 less $0.21 or $1.79. Divide the credit card surcharge by the selling price if you want to determine the surcharge as a percentage of the selling price. In this case, it is $1.79 divided by $3 or 60 percent.

How do you get money back from a credit card?

Call up your credit card provider and tell them what happened, and be ready to provide details of the time of the transaction and value of the purchase, and what went wrong. They might have to speak to the merchant first and take a few days to decide, or they could simply give you a refund on the spot.

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Is HDFC Platinum card free?

500 and waives it if a customer spends Rs. 1.50 Lakh or more. HDFC Bank Platinum Times Credit Card, on the other hand, charges an annual fee of Rs. 1,000 and waives it if a customer spends Rs. 7

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