Amazon’s New ₹49 Processing Fee on Instant Bank Discounts

Amazon has implemented a ₹49 processing fee for customers who use Instant Bank Discounts (IBD) of ₹500 or more, effectively lowering the overall savings from such offers. This new policy, which took effect on Friday, applies to all users, including Prime members, and this fee remains non-refundable even if orders are cancelled or returned.

The Impact on Customer Savings

With this additional cost, shoppers are encouraged to reassess their savings while applying bank discounts. For any purchase with a ₹500 bank discount, an additional ₹49 will be added to the final bill. This policy might alter shopping habits, especially for those whose discounts are close to the ₹500 mark, possibly prompting adjustments to cart totals or payment choices in an effort to maximise savings.

Who is Affected by the Fee?

• All customers using a bank discount of ₹500 or more will incur the fee.
• Even Prime members are not exempt from this charge.
• Discounts that are below ₹500 do not attract the fee.

Non-Refundable Nature of the Fee

According to Amazon’s help centre, the processing fee is not refundable under any situation, including order cancellations or returns. Once the charge is applied, it is final.

Rationale Behind Amazon’s Fee

Amazon states that the fee aims to cover costs linked to the “aggregation, management, and processing” of bank discount offers available on its platform. This move aligns Amazon with its competitor Flipkart, which already imposes a similar charge.

This latest decision by Amazon highlights a growing trend within e-commerce platforms to introduce service charges associated with promotional discounts, influencing how consumers conduct their online shopping.