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  • FIRST POST
    • GDJTAM
    • By GDJTAM 17th Apr 17, 10:48 AM
    • 43Posts
    • 1Thanks
    GDJTAM
    2.5%
    • #1
    • 17th Apr 17, 10:48 AM
    2.5% 17th Apr 17 at 10:48 AM
    I am paying for my holiday soon by mastercard and the agent will charge 2.5% for this transaction. this transaction fee will equate to over £90 and although someone has to process the payment how can the admin cost this much in this digital automated world we live in.

    Do we just accept this exuberant charge or can we dispute it with anyone?
Page 1
    • newuser86
    • By newuser86 17th Apr 17, 11:20 AM
    • 148 Posts
    • 23 Thanks
    newuser86
    • #2
    • 17th Apr 17, 11:20 AM
    • #2
    • 17th Apr 17, 11:20 AM
    This is because Mastercard charge the merchant for transactions, unfortunately you will just have to pay it
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
    • meer53
    • By meer53 17th Apr 17, 11:21 AM
    • 8,591 Posts
    • 12,327 Thanks
    meer53
    • #3
    • 17th Apr 17, 11:21 AM
    • #3
    • 17th Apr 17, 11:21 AM
    Accept it or pay by debit card. You would have been advised of the charge when booking so it can't be a surprise ?
    • GDJTAM
    • By GDJTAM 17th Apr 17, 12:17 PM
    • 43 Posts
    • 1 Thanks
    GDJTAM
    • #4
    • 17th Apr 17, 12:17 PM
    • #4
    • 17th Apr 17, 12:17 PM
    meer53

    I never said it was a surprise, the question was a generic how can mastercard justify £90 fee for a digital transfer?

    I am fully aware of charges been applied to credit cards as I've just paid it each time without a thought. This time I'm asking what do these businesses do to justify such a high admin fee?
    • lisyloo
    • By lisyloo 17th Apr 17, 1:49 PM
    • 20,982 Posts
    • 9,985 Thanks
    lisyloo
    • #5
    • 17th Apr 17, 1:49 PM
    • #5
    • 17th Apr 17, 1:49 PM
    Businesses don't have to justify themselves to you, but if I had to I'd mention rewards, section 75 protection, interest free days, bad debt that is never repaid etc.
    You do realise that your cc company are liable for the whole lot??

    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.

    It's up to you to be smart and use the advantages but not cop for the charges. You can't blame them for wanting to make a profit, that's that businesses do.
    • GDJTAM
    • By GDJTAM 17th Apr 17, 2:58 PM
    • 43 Posts
    • 1 Thanks
    GDJTAM
    • #6
    • 17th Apr 17, 2:58 PM
    • #6
    • 17th Apr 17, 2:58 PM
    not sure why certain forum members can't answer a question civilly without been obnoxious about it!

    I only asked why...that's how we learn!
    • gt94sss2
    • By gt94sss2 17th Apr 17, 3:01 PM
    • 3,947 Posts
    • 1,824 Thanks
    gt94sss2
    • #7
    • 17th Apr 17, 3:01 PM
    • #7
    • 17th Apr 17, 3:01 PM
    Yes, merchants can surcharge customers but the rules now say that they must charge no more than the cost of actually processing the payment.

    Have a look at https://www.gov.uk/government/publications/payment-surcharges and http://www.cardswitcher.co.uk/2017/02/credit-card-surcharge/

    Whether 2.5% is appropriate I can't say but as has been suggested you could perhaps pay part of it by credit card and the rest by debit card..
    • Biggles
    • By Biggles 17th Apr 17, 4:08 PM
    • 7,230 Posts
    • 4,648 Thanks
    Biggles
    • #8
    • 17th Apr 17, 4:08 PM
    • #8
    • 17th Apr 17, 4:08 PM
    Whether 2.5% is appropriate I can't say
    Originally posted by gt94sss2
    Maybe it is; but it certainly isn't exuberant.
    • eskbanker
    • By eskbanker 17th Apr 17, 4:18 PM
    • 4,154 Posts
    • 3,870 Thanks
    eskbanker
    • #9
    • 17th Apr 17, 4:18 PM
    • #9
    • 17th Apr 17, 4:18 PM
    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.
    Originally posted by lisyloo
    OP says they're paying an agent so there's no section 75 protection anyway (other than failure of the agent), i.e. no protection for problems with airlines, hotels, etc, when paying a middleman rather than the actual service provider.
    • Heng Leng
    • By Heng Leng 17th Apr 17, 4:38 PM
    • 3,757 Posts
    • 1,135 Thanks
    Heng Leng
    Businesses don't have to justify themselves to you, but if I had to I'd mention rewards, section 75 protection, interest free days, bad debt that is never repaid etc.
    You do realise that your cc company are liable for the whole lot??

    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.

    It's up to you to be smart and use the advantages but not cop for the charges. You can't blame them for wanting to make a profit, that's that businesses do.
    Originally posted by lisyloo
    They do actually have to justify their credit card charges as they aren't allow to do more than cover their costs. Therefore, your statement about making a profit is wrong.
    • eskbanker
    • By eskbanker 17th Apr 17, 4:49 PM
    • 4,154 Posts
    • 3,870 Thanks
    eskbanker
    Businesses don't have to justify themselves to you, but if I had to I'd mention rewards, section 75 protection, interest free days, bad debt that is never repaid etc.
    You do realise that your cc company are liable for the whole lot??

    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.

    It's up to you to be smart and use the advantages but not cop for the charges. You can't blame them for wanting to make a profit, that's that businesses do.
    Originally posted by lisyloo
    They do actually have to justify their credit card charges as they aren't allow to do more than cover their costs. Therefore, your statement about making a profit is wrong.
    Originally posted by Heng Leng
    I think you may be at cross purposes here about who 'they' are - retailers aren't allowed to make profits from levying card surcharges but card companies are allowed to set transaction fees in such a way as to generate profit (and they're the ones who have the liability for the bad debts, s75 protection, etc).
    • bris
    • By bris 17th Apr 17, 6:13 PM
    • 6,490 Posts
    • 5,481 Thanks
    bris
    Do you think Master card are free? They charge merchants a fee for their service, this fee is passed on to you, how difficult is that to understand.
    • Lemonsqueezer78
    • By Lemonsqueezer78 17th Apr 17, 8:37 PM
    • 284 Posts
    • 343 Thanks
    Lemonsqueezer78
    Mastercard don't charge the merchant anything. The merchants' bank charge them, and the bank pay a network interchange fee to MC. But in any case its unlikely the merchant are paying anywhere near 2.5%. However the company in question will justify the mark-up as covering the administrative costs of taking credit card payments... the cost of processing them, handling disputes and so on. Unfortunately there is not much you can do.
    • lisyloo
    • By lisyloo 17th Apr 17, 10:00 PM
    • 20,982 Posts
    • 9,985 Thanks
    lisyloo
    not sure why certain forum members can't answer a question civilly without been obnoxious about it!

    I only asked why...that's how we learn!
    Originally posted by GDJTAM
    Not sure if that was aimed at me, but I gave 4 reasons.
    • chattychappy
    • By chattychappy 18th Apr 17, 8:22 AM
    • 6,097 Posts
    • 3,149 Thanks
    chattychappy
    They do actually have to justify their credit card charges as they aren't allow to do more than cover their costs. Therefore, your statement about making a profit is wrong.
    Originally posted by Heng Leng
    I read that statement differently. I read it as: nothing wrong with businesses making a profit - therefore why shouldn't CCs charge such a fee to merchants for acceptance when potentially the cardholder gains so many benefits? In the case of merchants, nothing with them making a profit, so why shouldn't they pass on the costs of handling CCs, rather than take the hit themselves?

    Ie the merchants aren't particularly looking to make a profit out of the charge itself.
    • gt94sss2
    • By gt94sss2 18th Apr 17, 11:40 AM
    • 3,947 Posts
    • 1,824 Thanks
    gt94sss2
    In the past, some merchants were looking to make a profit out of the credit card charges they made consumers pay. The legislation above was designed to outlaw this.

    Mastercard and Visa are not allowed to charge more than 0.3% in charges to financial institutions but the charge a merchant may charge will include banking/other fees on top of this that banks charge merchants.
    • Heng Leng
    • By Heng Leng 19th Apr 17, 12:55 AM
    • 3,757 Posts
    • 1,135 Thanks
    Heng Leng
    I read that statement differently. I read it as: nothing wrong with businesses making a profit - therefore why shouldn't CCs charge such a fee to merchants for acceptance when potentially the cardholder gains so many benefits? In the case of merchants, nothing with them making a profit, so why shouldn't they pass on the costs of handling CCs, rather than take the hit themselves?

    Ie the merchants aren't particularly looking to make a profit out of the charge itself.
    Originally posted by chattychappy
    True but if they are accepting debit cards at no charge, then they would need to be charged 2.5% for taking credit cards as the admin and systems are identical.
    • jamesperrett
    • By jamesperrett 20th Apr 17, 11:57 AM
    • 606 Posts
    • 288 Thanks
    jamesperrett
    Don't forget that, if you have a cashback credit card, the cashback will come from that charge.
    • chattychappy
    • By chattychappy 22nd Apr 17, 10:26 AM
    • 6,097 Posts
    • 3,149 Thanks
    chattychappy
    True but if they are accepting debit cards at no charge, then they would need to be charged 2.5% for taking credit cards as the admin and systems are identical.
    Originally posted by Heng Leng
    It might be that they choose to absorb more costs with debit cards in order to avoid people asking to pay by cash or cheque. Another issue is "allocating" fixed costs - eg monthly fees, machine rental etc.
    • phillw
    • By phillw 22nd Apr 17, 2:52 PM
    • 347 Posts
    • 157 Thanks
    phillw
    True but if they are accepting debit cards at no charge, then they would need to be charged 2.5% for taking credit cards as the admin and systems are identical.
    Originally posted by Heng Leng
    Card readers look the same, but processing changes further down the line. Even HMRC charges you extra to pay your tax bill by credit card.

    The money will go towards things like paying for fraudulent transactions.
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