UPI Transaction Alert: Google Pay Charges Convenience Fees; How Much You Will Pay For Electricity, LPG Bills

Google Pay has join the bandwagon of charging convenience fee for electricity bills, water and cooking gas bills which is popularly known as LPG cylinder payments. As per reports, now, Google Pay is charging about 0.5% and 1% plus GST on utility bills payment through credit and debit cards. Other digital payment services apps Paytm and PhonePe are charging somewhat similar fees.

An ET report revealed that Google Pay is charging 0.5% to 1% on electricity, water and cooking gas bills. The report revealed that a customer paid approximately Rs 15 as a convenience fee for making electricity bill payments through a credit card. However, UPI payments carried directly through bank accounts were still free of charge.

According to Google Pay's Pay Bills support terms and conditions, you can pay your bills including mobile, television, electricity, water, and gas using Google Pay. However, for bill payments made with a credit, debit, or RuPay card, then convenience fee is applicable. You'll be notified of the applicable fee before completing the transaction.

Google Pay's support said, the convenience fee amount charged can vary based on various factors, including the bill payment amount. The exact fee is displayed to you at the time of bill payment.

It added, the convenience fee can be subject to changes in the future. The latest platform fee details are displayed while the bill payment is done on the Google Pay app.

Apart from convenience fees, there could be a chance of platform fee. As per Google Pay's support, there might be a platform fee applicable for using all types of payment methods like UPI, credit, debit, or RuPay card payments. However, this fee is applicable only for a few bill payment categories. The platform fee along with convenience fee, if any is displayed at the time of payment.

A platform fee is a cost that a customer pay when using the digital platform for making payments or bookings of any services. While convenience fee is an additional charge levied by businesses on customers for specific payment methods.

The reason behind convenience fee is that it helps cover the costs associated with processing credit or debit card payments, the Google Pay support highlighted.

The move comes after Google Pay had imposed Rs 3 convenience fee over a year ago, on mobile recharges.

Explaining in detail, a Times of India cited that an industry insider highlighted that the introduction of platform fees for bill payments by Google Pay indicates a wider movement towards monetising UPI transactions, as service providers aim to recover payment processing costs. The source added that fintech firms are striving to achieve a balance between expansion and sustainable revenue as UPI usage increases.

UPI Transaction Limit:

As per NPCI guidelines, for normal UPI the transaction limit is up to Rs 1 Lakh per transaction. For few specific categories of transaction in UPI like Capital Markets, Collections, Insurance, Foreign Inward Remittances the transaction limit is up to 2 lakh and for Initial Public Offering and Retail Direct Scheme the limit is up to Rs 5 lakh per transaction.