Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Stevobis
    • By Stevobis 18th Jun 17, 7:36 AM
    • 1Posts
    • 0Thanks
    Stevobis
    Credit card interchange fees
    • #1
    • 18th Jun 17, 7:36 AM
    Credit card interchange fees 18th Jun 17 at 7:36 AM
    In 2015 the EU introduced a new law capping credit card transaction charges at 0.3%. I booked a cruise with P&O and they charged me 1.5%. I told them it was illegal but they said their website clearly stated the charges and it shouldn't be a surprise to me. After a few wasted phone calls to their customer services team, I've now written to their CEO.

    Any ideas how I can fight this. It's a small amount of cash but I'm annoyed that many companies are ignoring the law and ripping off consumers.

    Steve
Page 1
    • zx81
    • By zx81 18th Jun 17, 8:16 AM
    • 14,084 Posts
    • 14,773 Thanks
    zx81
    • #2
    • 18th Jun 17, 8:16 AM
    • #2
    • 18th Jun 17, 8:16 AM
    You're confusing the cap on interchange with the retailer costs.

    Interchange is only part of those costs. They can pass those on but not make a profit on them.
    • Sparx
    • By Sparx 18th Jun 17, 11:10 AM
    • 763 Posts
    • 413 Thanks
    Sparx
    • #3
    • 18th Jun 17, 11:10 AM
    • #3
    • 18th Jun 17, 11:10 AM
    The interchange cap applies to the payment providers/banks providing the service to retailers and business, not to the retailers or businesses themselves accepting payment.

    E.g. the likes of Worldpay (Natwest), Global Payments (HSBC), Barclaycard (Barclays) etc who provide card terminals or website payment gateways, charge businesses per transaction a set % or pence.

    However being charged 1.5% for a transaction that only cost the business 0.3% (you don't know this for sure) does break the Consumer Rights (Payment Surcharges) Regulations 2012 - which specifically states:

    A trader must not charge consumers, in respect of a given means of payment, fees that exceed the costs borne by the trader for the use of that means.
    by Consumer Rights (Payment Surcharges) Regulations 2012
    Last edited by Sparx; 18-06-2017 at 11:14 AM.
    • phillw
    • By phillw 3rd Jul 17, 12:38 PM
    • 937 Posts
    • 555 Thanks
    phillw
    • #4
    • 3rd Jul 17, 12:38 PM
    • #4
    • 3rd Jul 17, 12:38 PM
    However being charged 1.5% for a transaction that only cost the business 0.3% (you don't know this for sure) does break the Consumer Rights (Payment Surcharges) Regulations 2012 - which specifically states:
    Originally posted by Sparx
    http://www.headforpoints.com/2015/04/14/why-we-really-dont-know-what-the-impact-of-credit-card-interchange-fee-capping-will-be/

    "The interchange fee is NOT the fee that most shopkeepers pay when they accept a credit card. That fee is set by the bank they work with and includes terminal rental and various other services, plus an amount to recoup the interchange fee. There is no obligation for banks to reduce the fees charged to shops at all."
    • CITRONELLA
    • By CITRONELLA 5th Jul 17, 9:53 AM
    • 1 Posts
    • 0 Thanks
    CITRONELLA
    • #5
    • 5th Jul 17, 9:53 AM
    • #5
    • 5th Jul 17, 9:53 AM
    phillw, can you help with advice on credit card charges?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,326Posts Today

8,704Users online

Martin's Twitter