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  • FIRST POST
    • roxytoo
    • By roxytoo 6th Oct 17, 10:21 AM
    • 30Posts
    • 1Thanks
    roxytoo
    credit/debit card charge to be axed
    • #1
    • 6th Oct 17, 10:21 AM
    credit/debit card charge to be axed 6th Oct 17 at 10:21 AM
    As far as i understand in Jan 18 it will not be legal to charge extra fees (even processing fees ) for paying by credit/debit cards. I run a business whereby people renting abroad pay their utility charges invoiced by the bill which is emailed monthly, they then have a week to pay and usually pay with their credit/debit card by a secure link I send. If i cannot charge the 2.5 % it costs me it means they will not have paid all the utility charges. is there a way around this?
Page 1
    • zx81
    • By zx81 6th Oct 17, 10:25 AM
    • 13,683 Posts
    • 14,147 Thanks
    zx81
    • #2
    • 6th Oct 17, 10:25 AM
    • #2
    • 6th Oct 17, 10:25 AM
    Absorb it into your cost base and adjust charges accordingly.

    The customer will have paid the full charge, regardless of method.
    • roxytoo
    • By roxytoo 6th Oct 17, 10:55 AM
    • 30 Posts
    • 1 Thanks
    roxytoo
    • #3
    • 6th Oct 17, 10:55 AM
    • #3
    • 6th Oct 17, 10:55 AM
    I can't see how I do that really, I have to send them the bill which could be , say 58euros. I normally say then theres 2% charge on top to pay with card so ask them to pay 59.16euros but legally I am not able to do that anymore?
    • BlondBoy
    • By BlondBoy 6th Oct 17, 11:20 AM
    • 158 Posts
    • 110 Thanks
    BlondBoy
    • #4
    • 6th Oct 17, 11:20 AM
    • #4
    • 6th Oct 17, 11:20 AM
    I'm not familiar with the details of the law, but sure there's nothing to stop you charging for a service you're providing for your clients.

    If the service is receipt of bills on their behalf and forwarding them on to clients for payment, only they can decide whether it's worth paying a small percentage of the bill's value for that.

    In short, I guess you've been charging 2.5% 'to cover payment processing fees' as far as your customer is concerned. I'd be surprised if charging 2.5% 'to collate and forward utility bills to clients in a timely manner' would breach the new law.
    • zx81
    • By zx81 6th Oct 17, 11:23 AM
    • 13,683 Posts
    • 14,147 Thanks
    zx81
    • #5
    • 6th Oct 17, 11:23 AM
    • #5
    • 6th Oct 17, 11:23 AM
    I can't see how I do that really, I have to send them the bill which could be , say 58euros. I normally say then theres 2% charge on top to pay with card so ask them to pay 59.16euros but legally I am not able to do that anymore?
    Originally posted by roxytoo
    You misunderstand. You can't charge them specifically for paying with a card.

    What you do is adjust your overall charges across the business to maintain the income/cost ratio you need.

    What this means in practice is that all customers end up paying a little more, to subsidise those paying by card.
    • chattychappy
    • By chattychappy 6th Oct 17, 11:34 AM
    • 6,364 Posts
    • 3,342 Thanks
    chattychappy
    • #6
    • 6th Oct 17, 11:34 AM
    • #6
    • 6th Oct 17, 11:34 AM
    As this concerns renting abroad and foreign utility bills, there is an argument that your contract is formed outside of the UK. What do your T+Cs say on the matter, if anything? Of course the foreign jurisdiction might have similar rules.

    That said, I'm sure it wouldn't stop people attempting to chargeback and CCs siding with cardholders.

    Else you could continue to charge your 2.5% fee on the basis it's a handling fee to cover your admin costs in paying utility bills on behalf of clients. Not link it to any particular payment method - it is actually a service you do for people.
    • roxytoo
    • By roxytoo 6th Oct 17, 12:20 PM
    • 30 Posts
    • 1 Thanks
    roxytoo
    • #7
    • 6th Oct 17, 12:20 PM
    • #7
    • 6th Oct 17, 12:20 PM
    Thanks all
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