Credit card transaction charges

yebaws

We have a small self catering holiday business and have accepted credit card transactions with an imprinter and paper vouchers for several years. I'v just had a letter from the Bank of Scotland recommending that we rent and electronic terminal @ £15 per month WITH A 4 YEAR, NON TRANSFERABLE CONMTRACT. If we do so we'll still pay the same transaction costs (2.5%). If we DON'T rent the machine, our transaction costs will go up to 5% and we'll have a monthly charge of £15 to pay.

Either way we loose big time and we'll just have to stop taking cards. Our turnover means it just wouldn't make it viable.

HBOS argue that they want everybody to move to electronic terminals to reduce fraud, which just doesn't wash - We've already been told that we'll be responsible for any fraudulent transaction as we don't have an electronic terminal, so there's no loss to them

At best this this is sharp practice (which we've become used to ever since Halifax merged with Bank of Scotland) at worst it's anti competition / price fixing.

Does anybody have any views on the later and whether we could have a case worth passing to the ombudsman?

Thanks for your views,

Justin

WHA

Shop around to see if you can find a cheaper alternative - I think the Federation of Small Business have a cheap provider (Co op or Alliance & Leicester I think) but you have to join the FSB to find out about it.