Fuel surcharge waiver is a facility offered by most banks/ credit card companies wherein the banks/ credit card companies waive off 1% surcharge that is charged on all the card transactions that are conducted at petrol stations.

Surcharge is nothing but an additional charge levied on a user for using a credit card when purchasing fuel. This means it is actually a charge levied on using the credit card in the first place.

So, let’s say you make a fuel purchase for Rs. 1000 through your credit card. In this case, you will end up paying additional Rs. 28, of which Rs. 25 is a surcharge and the rest is service tax. Thus, by waiving off the surcharge, which ranges from 1-3% of the transaction amount, credit card companies are merely reducing the amount they charge us for making the transaction.