The All India Petroleum Dealers Association (AIPDA) announced that its members would not accept payments by credit and debit cards.

Reason for refusal to accept cards
AIPDA president Ajay Bansal said that the decision came after “HDFC and other banks…quoted [an] RBI circular… [to charge] 1 per cent on all credit card transactions and between 0.25 and 1 per cent on all debit card transactions from January 9,” which would eat into the dealers’ profits.

1.A decision was made earlier by a few private banks to introduce from January 9 a one percent transaction fee on card payments. The move has not gone down well with petroleum dealers across the country.
2.It was claimed by the petroleum dealers that they were operating on a very thin margin,0.75 per cent on every litre of petrol sold out of which banks now wants them  to pay one per cent .

 “Hence we have no other go than stop accepting debit and credit cards of banks that are making these deductions, despite there being no reference to it in the circular issued by the RBI,” Mr. Bansal.
HDFC and Axis Banks have written to dealers about the deductions.