The use of the plastic money is high on use these days. To promote the use of the plastic money (Transactions through credit/debit cards) the banks are seeking to lower the charges on debit and credit cards.
The reports have shown that there has been increase in the use of cashless transactions. The number of point-of-sale (POS) terminals has increased to 10.65 lakh across the country by end-March 2014 as compared to 3.2 lakh in 2007.
The merchants or stores pay a fee to the banks for using the point-of-sale machines. The banks will lower the charges they charge on credit and debit card use, so that customers will more preferably use these means to make transactions.