I am sure you must own at least a couple of credit cards. After all, aren't they a handy piece of plastic that eliminates the need of carrying around wads of cash?

But how often have you noticed that the merchant/retailer charges a 2-2.5 per cent transaction fee on your credit card purchases? Why?

Because the merchant has to pay a small fee to his own bank and to the company (mostly either Mastercard/Visa) that issued the card to you. Be it at a hotel, mall, petrol pump or an online transaction; they all charge you this 2-2.5 per cent transaction fee.

What you probably don't know however, is that this amount, as per the rules, is supoosed to be paid by the merchant outlets from their own pocket. Instead, the amount is transferred to you, when in fact it is not at all obligatory.

Do you think this is a fair practice? Have you ever put your foot down and refused to pay the 2-2.5 per cent transaction fees and yet managed to buy the goods that you wanted?

What are your opinions and experiences in this regard? We would like to hear from you.