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  • FIRST POST
    • MSE Megan F
    • By MSE Megan F 19th Jul 17, 8:27 AM
    • 171Posts
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    MSE Megan F
    MSE News: Government to ban ALL extra charges for paying by credit or debit card
    • #1
    • 19th Jul 17, 8:27 AM
    MSE News: Government to ban ALL extra charges for paying by credit or debit card 19th Jul 17 at 8:27 AM
    Companies will be banned from charging ANY fees for credit or debit card payments from early next year...
    Read the full story:
    'Government to ban ALL extra charges for paying by credit or debit card'

    Click reply below to discuss. If you havent already, join the forum to reply. If you arent sure how it all works, read our New to Forum? Intro Guide.
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Page 1
    • chattychappy
    • By chattychappy 19th Jul 17, 8:30 AM
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    chattychappy
    • #2
    • 19th Jul 17, 8:30 AM
    • #2
    • 19th Jul 17, 8:30 AM
    Why not use the existing thread?
    http://forums.moneysavingexpert.com/showthread.php?t=5681612
    • Paul_Herring
    • By Paul_Herring 19th Jul 17, 8:35 AM
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    Paul_Herring
    • #3
    • 19th Jul 17, 8:35 AM
    • #3
    • 19th Jul 17, 8:35 AM
    Of course, there won't be any unintended circumstances with this.

    For example small businesses won't be charged huge one-off fees such that they won't be able to take cards.

    And people who prefer to pay cash won't be penalised with prices being raised over and above the amount required to cover the charge by businesses that do keep cards.

    Nope. Win-win all round.

    Typical of governments trying to micromanage.
    Conjugating the verb 'to be":
    o I am humble
    o You are attention seeking
    o She is Nadine Dorries
    • PasturesNew
    • By PasturesNew 19th Jul 17, 8:40 AM
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    PasturesNew
    • #4
    • 19th Jul 17, 8:40 AM
    • #4
    • 19th Jul 17, 8:40 AM
    I wonder if their intention is that if people aren't charged extra for using a credit card they'll be more likely to incur debt and use the cards as they won't think of the money being spent on the credit card as they'll normalise the card's use.

    Meanwhile, cash/debit card buyers will pay the price of these debt hoarders as the costs will be passed on to all products. A few pennies extra on everything you buy ...

    Hits the poorer/cash astute; benefits those too "free with other people's money" - and the bankers get to have more Gala Dinners of celebration at business growth as the debt mountain accumulates.
    • StopIt
    • By StopIt 19th Jul 17, 8:44 AM
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    StopIt
    • #5
    • 19th Jul 17, 8:44 AM
    • #5
    • 19th Jul 17, 8:44 AM
    As posted in the other thread...


    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.
    • Optimist
    • By Optimist 19th Jul 17, 9:02 AM
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    Optimist
    • #6
    • 19th Jul 17, 9:02 AM
    • #6
    • 19th Jul 17, 9:02 AM
    As I have just paid a deposit by credit card for a holiday next year does this mean I get a refund of the charges ?
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
    • chattychappy
    • By chattychappy 19th Jul 17, 9:09 AM
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    chattychappy
    • #7
    • 19th Jul 17, 9:09 AM
    • #7
    • 19th Jul 17, 9:09 AM
    As I have just paid a deposit by credit card for a holiday next year does this mean I get a refund of the charges ?
    Originally posted by Optimist
    Certainly.

    Just text YES to the claims guys... They will refund any deposits you've paid for the last 6 years.
    • Optimist
    • By Optimist 19th Jul 17, 9:13 AM
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    Optimist
    • #8
    • 19th Jul 17, 9:13 AM
    • #8
    • 19th Jul 17, 9:13 AM
    Certainly.

    Just text YES to the claims guys... They will refund any deposits you've paid for the last 6 years.
    Originally posted by chattychappy
    Amusing

    However in the theory that if you don't ask you don't get I have asked the company concerned,
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
    • Paul_Herring
    • By Paul_Herring 19th Jul 17, 9:30 AM
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    Paul_Herring
    • #9
    • 19th Jul 17, 9:30 AM
    • #9
    • 19th Jul 17, 9:30 AM
    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".
    Originally posted by StopIt
    And the cost of handling cash is 2-5% of the value of the cash transactions?

    Bearing in mind that small businesses don't necessarily put all their cash into the bank. One business I know used the cash at the wholesalers to buy stock - it went nowhere near a bank.
    Conjugating the verb 'to be":
    o I am humble
    o You are attention seeking
    o She is Nadine Dorries
    • StopIt
    • By StopIt 19th Jul 17, 9:39 AM
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    StopIt
    And the cost of handling cash is 2-5% of the value of the cash transactions?

    Bearing in mind that small businesses don't necessarily put all their cash into the bank. One business I know used the cash at the wholesalers to buy stock - it went nowhere near a bank.
    Originally posted by Paul_Herring

    It's typically 0.7-1% but that's not the point. You've never heard of people being charged for using cash despite the costs of actually handing it.


    It costs more than just the fees to handle the cash also. With card payments, the money goes straight to your accounts, done. With cash, you'll need a float, and who hasn't had a float not tally up at the end of the day? That and the cost of someone taking the time taking the money to the bank, queuing and handing the money over. All of this is time, thus cost to the business.


    It isn't as simple as saying cards cost more to a business than cash, therefore the surcharge is valid. The reality is the total cost of cash vs cards is not that clear cut.


    Also, a business only paying their cashflow for stock? So never banking money for tax, business rates, or any other purpose? Sorry, but that's utter codswallop.
    • jon81uk
    • By jon81uk 19th Jul 17, 9:46 AM
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    jon81uk
    I've never actually been against RyanAir etc charging for credit cards as long as debit cards are free. I would almost expect them to stop taking credit cards and go to debit card only instead.
    • jon81uk
    • By jon81uk 19th Jul 17, 11:03 AM
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    jon81uk
    Additionally will this lead to more small businesses just saying no to card payment under 10 etc.
    • Enigmatic Me
    • By Enigmatic Me 19th Jul 17, 12:17 PM
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    Enigmatic Me
    I heard mentioned on the news that this will affect Paypal too. I wonder if this will be linked to Ebay? I sell quite a lot of low value stuff on Ebay and Paypal take a minimum of 25p for every transaction
    The best things in life are free.....
    • Alpha 5
    • By Alpha 5 19th Jul 17, 12:51 PM
    • 36 Posts
    • 19 Thanks
    Alpha 5
    So not only are prices likely to rise as a result, but we'll probably lose what's left of the cashback card market too. Looks like a lose-lose situation to me.
    • Rosemary7391
    • By Rosemary7391 19th Jul 17, 1:59 PM
    • 1,836 Posts
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    Rosemary7391
    I heard mentioned on the news that this will affect Paypal too. I wonder if this will be linked to Ebay? I sell quite a lot of low value stuff on Ebay and Paypal take a minimum of 25p for every transaction
    Originally posted by Enigmatic Me
    They'll still charge sellers - how else is PayPal going to afford to run itself?
    Me escondo detras de mi lengua... tengo miedo de que me entiendas... pero me gustara que me entendases Ayudame!
    • Heng Leng
    • By Heng Leng 19th Jul 17, 3:42 PM
    • 4,218 Posts
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    Heng Leng
    Ultimately, the UK might become more like Germany where bank transfers are a more common payment method for larger items.

    The only option for some low margin retailers might be to stop accepting cards or raise prices.
    • Chrysalis
    • By Chrysalis 19th Jul 17, 7:19 PM
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    Chrysalis
    not well thought out from the government.
    • colin79666
    • By colin79666 19th Jul 17, 8:01 PM
    • 1,301 Posts
    • 734 Thanks
    colin79666
    So the small shop will no longer be allowed to say 50p surcharge for card transactions under 5 but will they be allowed to say no cards for payments under 5?

    I don't mind small places adding a reasonable charge for the card costs then incur but I get really annoyed with the big companies and on larger amounts - almost like they are trying to avoid section 75 claims.
    • zx81
    • By zx81 19th Jul 17, 8:04 PM
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    zx81
    Why would companies want to avoid section 75 claims?
    • chattychappy
    • By chattychappy 19th Jul 17, 8:35 PM
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    chattychappy
    I really resent the government telling me that I can't get a better price for cash/bank transfer if a trader wishes to offer it.

    BTW, I'd like to see S75 repealed. Everytime I used my credit card, I feel that between me and the trader we are subsidising all the silly claims people bring (fake uggs from China etc).

    This is all about removing choice and is uncompetitive.
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