Amazon has begun charging a Rs 49 processing fee for customers who use Instant Bank Discounts (IBD) of Rs 500 or more. This new fee, which went into effect on Friday, effectively reduces the net savings offered by these promotions.
The fee applies to all users, including Prime members, and is non-refundable, even if an order is cancelled or returned. This decision puts Amazon in line with Flipkart, which already has a similar fee structure. Amazon says the charge is meant to cover the costs related to the “aggregation, management, and processing” of bank discount offers on its platform.
Consumers are now required to consider this extra cost when determining their overall savings. For instance, a purchase of Rs 5,000 that includes a Rs 500 bank discount will now cost Rs 4,549, instead of Rs 4,500.
Who is affected by this fee?
- Any customer using a bank discount of Rs 500 or more.
- The fee applies to all users, including Prime members.
- Discounts below Rs 500 are not subject to the fee.
What happens if an order is canceled or returned?
The Rs 49 processing fee is non-refundable, regardless of whether the order is cancelled or returned. Once the fee is applied, it is final.
Why is Amazon implementing this fee?
Amazon states that the fee helps cover the expenses associated with managing and processing bank discount offers. Essentially, it serves as a service charge for the facilitation of these discounts.
This policy change may influence consumer purchasing decisions, particularly for those whose discounts are just above Rs 500. It could potentially prompt them to alter their cart values or reconsider their payment methods to maximize their savings.
