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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 havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.
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Page 2
    • Paul_Herring
    • By Paul_Herring 19th Jul 17, 9:04 PM
    • 6,179 Posts
    • 2,905 Thanks
    Paul_Herring
    Why would companies want to avoid section 75 claims?
    Originally posted by zx81
    More to the point, how would what you replied to allow them to avoid it?
    Conjugating the verb 'to be":
    o I am humble
    o You are attention seeking
    o She is Nadine Dorries
    • ic
    • By ic 19th Jul 17, 11:28 PM
    • 2,514 Posts
    • 1,293 Thanks
    ic
    I wonder if I'll be able to buy my next car entirely on a cashback or points credit card, then balance transfer for a long zero percent rate?

    Perhaps places like garages will impose a limit on how much they'd accept on credit card? Previously they've always applied a fee.
    * my posts are made in good faith and only represent my own opinion, experience or understanding of a situation.
    • jonesMUFCforever
    • By jonesMUFCforever 19th Jul 17, 11:46 PM
    • 24,185 Posts
    • 11,458 Thanks
    jonesMUFCforever
    I wonder if I'll be able to buy my next car entirely on a cashback or points credit card, then balance transfer for a long zero percent rate?

    Perhaps places like garages will impose a limit on how much they'd accept on credit card? Previously they've always applied a fee.
    Originally posted by ic
    ..............or increase the price of the car to all by say 3%??
    What goes around - comes around
    give lots and you will always receive lots
    • redux
    • By redux 20th Jul 17, 12:24 AM
    • 17,507 Posts
    • 22,363 Thanks
    redux
    These charges were already substantially decreased a year or two ago.

    So for instance a firm that had previously charged 3% for credit cards and no margin for debit cards offered to charge me 0.5% on credit card this year.

    Also it has become noticeable that places will take contactless payment with either credit or debit cards for smaller amounts, e.g. £10 minimum before, now £4 is ok.

    For these reasons I think some of the complaints above might be overdone. The biggest proportion of the decrease in these fees has already happened before this.
    Last edited by redux; 20-07-2017 at 1:18 PM.
    • boo_star
    • By boo_star 20th Jul 17, 6:20 AM
    • 1,317 Posts
    • 667 Thanks
    boo_star
    These charges were already substantially decreased a year or two ago.
    Originally posted by redux
    And nobody took any notice of it, especially government bodies.

    Credit card fees were capped at 0.3%, but my local council still charges 1.3%. If that wasn't enough they've decided to do the same for PayPal payments just this month.
    • eskbanker
    • By eskbanker 20th Jul 17, 6:55 PM
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    eskbanker
    And nobody took any notice of it, especially government bodies.

    Credit card fees were capped at 0.3%, but my local council still charges 1.3%. If that wasn't enough they've decided to do the same for PayPal payments just this month.
    Originally posted by boo_star
    That's because credit card fees (to customers) were not capped at 0.3% - there was a cap introduced on the interchange costs between the issuing and acquiring banks, but this isn't directly related to the charges paid by merchants to their acquirers and therefore the ultimate retailer surcharges weren't capped (the only constraint is that they're not allowed to profit).
    • charltonfan1
    • By charltonfan1 16th Aug 17, 1:34 PM
    • 277 Posts
    • 51 Thanks
    charltonfan1
    Does this apply to Car parking meters which charge upto £1 for accepting payment by credit card?
    • Peter2322
    • By Peter2322 31st Aug 17, 9:53 AM
    • 1 Posts
    • 1 Thanks
    Peter2322
    as a small business owner we never used to charge for Master and visa Credit card transactions but with American express is different they charging small business a charge of 5% per transaction (to cover all the benefit and points they give to the customers) compare to visa and master card charging max 1.2% so we will probably have to stop accepting Amex as a payment method (we only started to accept them as my costumers asked for it and were happy to pay a 4% charge as they wanted to get their points)
    • EarthBoy
    • By EarthBoy 31st Aug 17, 10:25 AM
    • 1,759 Posts
    • 1,074 Thanks
    EarthBoy
    we will probably have to stop accepting Amex as a payment method
    Originally posted by Peter2322
    I think a lot of businesses will do the same.
    • TGICORP
    • By TGICORP 13th Sep 17, 8:39 AM
    • 1 Posts
    • 2 Thanks
    TGICORP
    credit card charges
    Not all businesses take cash. Our business is B to B and takes a thousands of pounds on credit cards. Many small businesses take our 30 day credit terms then when payment is due pay on card so they can get up to another 59 days credit.
    Taking credit cards is a significant cost to our business, every month we pay between £700.00 to £1100.00 in card fees every month. If they paid by BACS there is zero cost to us.

    If we could not charge for these it would reduce our profit by £700.00 to £1100.00 which leaves us with 2 choices, to reduce costs or increase prices. Rather than make people redundant we will be increasing costs to cover this extra charge to our business, so the purchaser is actually no better off.

    That aside, I think the government has an ulterior motive. They want to make it cheaper to pay by card to reduce the cash economy and in turn the black economy, which is no bad thing. When cards are used everything is traceable
    • Nostarg
    • By Nostarg 13th Sep 17, 2:26 PM
    • 1 Posts
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    Nostarg
    As I understand this and am concerned about it, it applies to ALL credit and debit card payments not just Amex or credit cards. As a self employed private hire taxi driver, we have a terminal that we are charged 2.75% for all transactions through contactless, chip and pin or swipe. At present our company has two rates for each journey one for cash payments and one for card payments which reflects the 2.75% charge we incur. As I understand it, in future, we are expected to deliver our services for a 2.75% reduction in price if the passenger chooses to pay on card as we are expected to take the hit for the card payment. Probably better to stop taking card payments altogether.
    • jonesMUFCforever
    • By jonesMUFCforever 13th Sep 17, 9:05 PM
    • 24,185 Posts
    • 11,458 Thanks
    jonesMUFCforever
    As I understand this and am concerned about it, it applies to ALL credit and debit card payments not just Amex or credit cards. As a self employed private hire taxi driver, we have a terminal that we are charged 2.75% for all transactions through contactless, chip and pin or swipe. At present our company has two rates for each journey one for cash payments and one for card payments which reflects the 2.75% charge we incur. As I understand it, in future, we are expected to deliver our services for a 2.75% reduction in price if the passenger chooses to pay on card as we are expected to take the hit for the card payment. Probably better to stop taking card payments altogether.
    Originally posted by Nostarg
    Indeed that is your choice and the way that market forces work.
    You could try to increase all fares?
    You may also lose some fares where people want to pay by card.
    What goes around - comes around
    give lots and you will always receive lots
    • redux
    • By redux 15th Sep 17, 11:46 AM
    • 17,507 Posts
    • 22,363 Thanks
    redux
    As I understand this and am concerned about it, it applies to ALL credit and debit card payments not just Amex or credit cards. As a self employed private hire taxi driver, we have a terminal that we are charged 2.75% for all transactions through contactless, chip and pin or swipe. At present our company has two rates for each journey one for cash payments and one for card payments which reflects the 2.75% charge we incur. As I understand it, in future, we are expected to deliver our services for a 2.75% reduction in price if the passenger chooses to pay on card as we are expected to take the hit for the card payment. Probably better to stop taking card payments altogether.
    Originally posted by Nostarg
    It also costs you time and probably money to take cash to the bank. Do you surcharge to cover these costs when customers want to pay with cash?
    • smarttips
    • By smarttips 14th Oct 17, 11:49 AM
    • 5 Posts
    • 1 Thanks
    smarttips
    DVLA still surcharging
    So, if the government now thinks such charges are wrong, why are the DVLA still surcharging for credit card payments for vehicle tax renewals? Disgraceful! They should have set an example and stopped them immediately.
    • zx81
    • By zx81 14th Oct 17, 11:52 AM
    • 14,108 Posts
    • 14,791 Thanks
    zx81
    If they had, prices would have gone up already, so let's hope they leave it to the last minute
    • eskbanker
    • By eskbanker 15th Oct 17, 4:16 PM
    • 5,804 Posts
    • 5,688 Thanks
    eskbanker
    I went to pay the balance of my holiday with British Airways today and was charged 10% of the value in Credit Card charges. This is way over the government guidelines of a maximum of 2% costs. Anyone else had this issue with BA?
    Originally posted by fuzzbox9
    I don't believe there is any such government guideline as this is essentially a commercial matter (while needing to comply with legislation and regulations obviously).

    However, more pertinently, https://www.britishairways.com/travel/gsanswer/public/en_gb?faqid=1160 states BA's policy as:
    Credit cards billed in the UK, Finland or Switzerland and corporate credit cards billed in Spain - 1% of the cost of your booking, up to a maximum of £20/€25/CHF 30 per person, per transaction
    so complain to them if they've charged more than this!

    Edit: post I was replying to seems to have been deleted already!
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