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  • FIRST POST
    • wake≈turbulence
    • By wake≈turbulence 11th Oct 17, 4:04 PM
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    wake≈turbulence
    13 JAN 2018 legislation
    • #1
    • 11th Oct 17, 4:04 PM
    13 JAN 2018 legislation 11th Oct 17 at 4:04 PM
    In view of the forthcoming legislation, removing the option to make surcharges for using a credit card or debit card by some merchants is likely only part of the full solution. so does anyone know if it will address the following:

    Presumably payment for goods or services paid by credit card can still result in a cost effected by quoting a charge or a charge policy that states that a discount will be or may be offered for payment by debit cards or cash.

    Another aspect of this is that small retailers would have previously been inclined to stipulate a minimum purchase amount to avoid a surcharge. Once they can no longer charge a surcharge under these circumstances, presumably there is no prohibition in being able to refuse altogether to accept payment by credit card for purchase amount less than say £5 or £10.

    Something is better than nothing of course, but legislation is rarely if ever perfect, and quite often less than useless.
Page 1
    • zx81
    • By zx81 11th Oct 17, 4:07 PM
    • 14,389 Posts
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    zx81
    • #2
    • 11th Oct 17, 4:07 PM
    • #2
    • 11th Oct 17, 4:07 PM
    A discount for cash would be the same as a surcharge for credit. So no.

    The likely impact is that some smaller retailers will stop taking cards, and others will increase prices across the board to absorb the card costs.
    • Ebe Scrooge
    • By Ebe Scrooge 11th Oct 17, 4:10 PM
    • 4,014 Posts
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    Ebe Scrooge
    • #3
    • 11th Oct 17, 4:10 PM
    • #3
    • 11th Oct 17, 4:10 PM
    I live in a very small rural community, and many of the local traders have never accepted either debit or credit cards - I don't know whether that's due to the fees, or just the cost of the card-reader terminal itself. You quickly get used to it, and you just make sure you get some cash out when you're in town.


    But if retailers are no longer allowed to charge fees, yet still get charged themselves by the card companies - I suspect they'll simply put their prices up to cover the fees.
    I may not know much about art, but I know what I like.
    • wake≈turbulence
    • By wake≈turbulence 11th Oct 17, 11:16 PM
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    wake≈turbulence
    • #4
    • 11th Oct 17, 11:16 PM
    13 JAN 2018 Credit cards fees
    • #4
    • 11th Oct 17, 11:16 PM
    Thanks for the reply. I'm sure you are correct, although I dare say someone will figure out a loophole, or will attempt to test the law one way or another.


    A discount for cash would be the same as a surcharge for credit. So no.

    The likely impact is that some smaller retailers will stop taking cards, and others will increase prices across the board to absorb the card costs.
    Originally posted by zx81
    • tastyhog
    • By tastyhog 12th Oct 17, 2:25 AM
    • 184 Posts
    • 276 Thanks
    tastyhog
    • #5
    • 12th Oct 17, 2:25 AM
    • #5
    • 12th Oct 17, 2:25 AM
    A discount for cash would be the same as a surcharge for credit. So no.

    The likely impact is that some smaller retailers will stop taking cards, and others will increase prices across the board to absorb the card costs.
    Originally posted by zx81
    I highly doubt it, rates have been capped now, so when existing contracts are up for renewal there's no reason any merchant can't get rates at around the 0.39% for debit and 0.69% for credit cards, there is a 2p authorisation fee for each transaction, which I believe are waived for contactless payments, hence the push by businesses for customers to use it.

    so even on lower purchase sums it shouldn't eat in to their profits.

    you're talking a 5p fee on a £5 spend, or a 3p fee on a £2 spend.

    it's nothing, and if their profits are affected by that they seriously need to rethink their business model, or add a penny to items across the board.
    • chattychappy
    • By chattychappy 12th Oct 17, 8:32 AM
    • 6,440 Posts
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    chattychappy
    • #6
    • 12th Oct 17, 8:32 AM
    • #6
    • 12th Oct 17, 8:32 AM
    I highly doubt it, rates have been capped now,
    Originally posted by tastyhog
    What cap are you thinking of?
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