Credit card surcharges to be banned

Ebe_Scrooge · 19 July 2017 at 7:32AM

http://www.bbc.com/news/business-40648641

Now, I know none of us like paying the surcharge, and some retailers take the mickey. But being realistic, is it not reasonable for businesses, particularly smaller ones, to pass on the fees they get charged by the banks ? I wonder how many of them will just increase the price of their goods, or else just refuse to take cards full stop ?

kathrynha · 19 July 2017 at 7:37AM

The big businesses needed stopping from taking the mickey, but the small businesses will suffer as they will have to charge more on all sales to cover it.

Maybe a better thing would be to stop banks charging the businesses. Surely it is cheaper for banks to deal with a small businesses card payments than it is for them to pay counter staff in branch to deal with the cash payments.

StopIt · 19 July 2017 at 7:55AM

I'm not entirely sympathetic to the "Think of the small business" stuff.

Small business have to pay for their cash to be processed at a bank, yet I've never heard of being charged a "cash fee". There's costs to any sort of payment method, be it at the time of processing, or later and most business get on just fine averaging them out in the total retail cost of the items being sold.

Of course, business like Ryanair who use the charge to frankly take the proverbial can go take a jump too. I'm not going to mourn these costs being banned at all.

chattychappy · 19 July 2017 at 8:27AM

I resent this government/EU interference. I should be free to negotiate with a trader. If they want to offer a discount for cash, take CC for a fee etc etc., then I should be able to make my choice, haggle, go elsewhere etc.

The only issue should be transparency - and I've got no problem with the government enforcing this.

If CCs know that shops can no longer offer cash/debit card deals for less, doesn't that reduce the incentive for CCs to keep their fees low?

If they want to interfere, it would be better to address:
1) DCC
2) The "almost" standard 2.75% charged for foreign transactions.

Rosemary7391 · 19 July 2017 at 9:41AM

I can see this being a bit annoying. At the moment if I haven't enough cash, and I need a bite to eat or a drink from a shop, I can choose to pay them a few pence to use my card. Normally I'm more organised than that, but if I'm not it's not going to make me any happier that I'll have to buy a lot more stuff (to make a minimum threshold), possibly lugging around stuff I don't want or need.

StopIt - I guess cash is cheaper for them to process. They can accumulate it over whatever period and bank all at once. Anyone know how much, say, Mastercard might charge a small shop per transaction?

brianBarrett · 18 December 2017 at 2:40AM

Many readers appear delighted with this. I, however, am not so pleased.

The legislation is fine in preventing the rip-off charges, but it also prevents recharging of the relatively small charges that credit card companies charge the supplier - say 0.415%/0.386%. The legislation is too extreme and is having in-intended consequences.

In particular, as a result of not being able to re-charge the fees, HMRC are from 13-Jan-18, stopping taking payment by Credit card. Given that many of us will have large tax bills to pay at the end of January, firstly 6 weeks notice of stopping payment is far too small and secondly, there should not be stopping payments at all via this means. I personally predict a riot as many people will not be able to pay the bill in cash.

It is also likely that everyday service providers will stop receiving payments via credit card. Credit cards give flexibility in payments and provided they are cleared in reasonable time are not the pariah that HM Government think they are.

It is likely that I will not be able to pay my tax bill in cash on 31-Jan - though it has not yet been calculated. The money is in use elsewhere and my plan has always been to pay via card -this rug, however, has been pulled away. It looks like this legislation is indirectly making me a tax defaulter - which I have never been. it is probable that I will be passed to a debt collection agency, cost the HM Government more money, and the agency will probably let me pay them via credit card. I shall then go to prison for refusing to pay the £100 late payment fee - tax that I never refused to pay in the first place.

Hardly the win-win situation which 1 reader has posted.

PeacefulWaters · 18 December 2017 at 12:40PM

I personally predict a riot

I'm going to go out on a limb and personally predict there won't be a riot over the abolishing of credit card surcharges.

Just a gut instinct.

eDicky · 18 December 2017 at 12:56PM

In October when I bought a bag of nuts in a Turkish shop in Hackney, the proprietor informed me of a £1 charge if I paid by card. I asked him what he will do in January. "What in January?" I mentioned the impending abolition of charges for card payment. "Oh well, we'll see..."

SuperAllyB · 18 December 2017 at 2:19PM

brianBarrett wrote: »

Many readers appear delighted with this. I, however, am not so pleased.

The legislation is fine in preventing the rip-off charges, but it also prevents recharging of the relatively small charges that credit card companies charge the supplier - say 0.415%/0.386%. The legislation is too extreme and is having in-intended consequences.

In particular, as a result of not being able to re-charge the fees, HMRC are from 13-Jan-18, stopping taking payment by Credit card. Given that many of us will have large tax bills to pay at the end of January, firstly 6 weeks notice of stopping payment is far too small and secondly, there should not be stopping payments at all via this means. I personally predict a riot as many people will not be able to pay the bill in cash.

It is also likely that everyday service providers will stop receiving payments via credit card. Credit cards give flexibility in payments and provided they are cleared in reasonable time are not the pariah that HM Government think they are.

It is likely that I will not be able to pay my tax bill in cash on 31-Jan - though it has not yet been calculated. The money is in use elsewhere and my plan has always been to pay via card -this rug, however, has been pulled away. It looks like this legislation is indirectly making me a tax defaulter - which I have never been. it is probable that I will be passed to a debt collection agency, cost the HM Government more money, and the agency will probably let me pay them via credit card. I shall then go to prison for refusing to pay the £100 late payment fee - tax that I never refused to pay in the first place.

Hardly the win-win situation which 1 reader has posted.

Iif it's going to.cause you that much bother why not.pay it before they stop accepting credit cards? Then, budget better for next time - taxes are one of the few certainties in life.

eskbanker · 18 December 2017 at 2:21PM

SuperAllyB wrote: »

Iif it's going to.cause you that much bother why not.pay it before they stop accepting credit cards? Then, budget better for next time - taxes are one of the few certainties in life.

See the poster's other thread for the rest of the debate, including those very points!

creditscoremeansnothing · 18 December 2017 at 6:35PM

Brilliant plan by the Government which will backfire.

I own a business and to give my customers the best value i have made a surcharge to cover credit card payments (i have only ever passed on the cost which i pay).

Now i can't charge extra and call it a "card charge" so from January i have raised all my prices to cover the cost of this so everyone now pays more and so is penalised.

Great Plan!

Credit card surcharges to be banned

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