A ban on illegal cellular towers is causing problems for credit card transactions in the Indian capital city of New Delhi, local newspaper The Times of India reports. Several shops at high-end malls in the city reported credit card failures because of failed authorization calls caused by drops on cellular connectivity.
The issue concerning cellular towers began a week ago when municipal authorities sealed 215 illegal mobile towers. Another 900 towers will be sealed in the next week under a court ruling. Mobile operators installed these towers to support cellular connectivity for mobile phones. But they did so without having the requisite licenses and compliance with fire safety, building clearance and other regulations.
“It is hurting our business, and we are trying to get the government to see our point of view,” a spokesperson for the Delhi Traders Association tells PaymentsSource. “Card transactions make up more than 36% of all our [members’] transactions. … “However, we won’t see any change until this matter is resolved as a whole.”
PaymentsSource contacted the Indian Banks Association and point-of-sale terminal operator Prism Payments on whether it is mandatory for merchants to use alternate arrangements, such as landline connectivity, to secure card authorizations. Both declined to comment.
