Minimum Spend for Debit Card Payments

williham

debit cards are a set fee like 25p, credit cards are around 2-2.5% for little shops.. That's why there's a minimum spend before the 25p becomes economical.

UK2010

OlliesDad wrote: »

A small local shop should be able to comfortably absorb the costs

Are you mad????

With all the supermarkets selling everything at about 2 or 3% above the cost value?

You've never ran a business ever have you? Or know pretty much nothing about retail.

Amistoso_2

Ch4rlieB wrote: »

2.5% only if its Amex..

The others charge around 1%.

But still agree on the point of smaller retailers not being able to absorb the cost.

the 2.5% applies to all card payments, it's written at the bottom of my Morrisons receipt and I paid by debit card...

Nukumai

For Visa there are strict terms that apply to merchants. In the US, for example, the setting of a minimum purchase has always been strictly prohibited. However, if memory serves, the rules for Europe are less clear (though, I seem to recall that the same rule might apply?)

hippey

Ch4rlieB wrote: »

2.5% only if its Amex..

The others charge around 1%.

But still agree on the point of smaller retailers not being able to absorb the cost.

The fees are incorrect:

debit cards are a fixed fee per transaction in the region of 15-30p
visa credit & MasterCard credit are % per transaction value in the region of 0.9-4% depending on risk value.
Amex is around 3%

also, some aquirers charge a fee for authorisations albeit very rare now, then you have the fee for terminal rental about £ 15

so for a small retailer low value credit card transactions are not that bad, but debit cards can really hurt. But a retailer must have authority from the aquirer to enable refusal of the low value transactions.

hippey

Amistoso wrote: »

the 2.5% applies to all card payments, it's written at the bottom of my Morrisons receipt and I paid by debit card...

This is for VAT avoidance as payment services are not VATable however the base price from the bank will follow the normal rules, some retailers save a lot of money doing it this way.

OlliesDad

UK2010 wrote: »

Are you mad????

With all the supermarkets selling everything at about 2 or 3% above the cost value?

You've never ran a business ever have you? Or know pretty much nothing about retail.

I think the clue is in your comments, the small shops do charge more to cover the additional costs, thats why the corner shop is more expensive.

I have my degree in business, and it is basics to know that you build in costs into the price of your products.

suited-aces

boliston wrote: »

The last time I encountered this rule was buying a pair of gloves at a small shop/cafe next to the sea. They had taken the label tags off the gloves as I wanted to wear them and I handed over my credit card for £7 I think and they said sorry it has to be £10 for cards.

I explained that credit cards are charged as a percentage and not a fixed fee like debit cards but the lady seemed a bit too thick to understand any of this so I just told her to keep the gloves.

Get over yourself. It had nothing to do with the lady being thick, or with you feeling superior to her (typical pompus customer). Unless it was the shop owner herself (which you will no doubt claim it was), the lady simply could not do it for you. No matter how much/little it cost, if she has not been authorised by her boss to allow cards for transactions of that size. If shop assistants aren't authorised to do a thing, they can't do it. No matter how much an annoying customer like yourself seems to know.

Ivory_Tinkler

suited-aces wrote: »

Get over yourself. It had nothing to do with the lady being thick, or with you feeling superior to her (typical pompus customer). Unless it was the shop owner herself (which you will no doubt claim it was), the lady simply could not do it for you. No matter how much/little it cost, if she has not been authorised by her boss to allow cards for transactions of that size. If shop assistants aren't authorised to do a thing, they can't do it. No matter how much an annoying customer like yourself seems to know.

Here here, there is nothing worse than a customer coming into your shop and telling you how to run your business :mad: I have been into Netto and found that there was a £10 min spend before using a debit card but I don't know if they still do this.

The_FD

Anihilator wrote: »

Tbh why should a shop have to pay 2.5% for your convenience or whatever when your spending pennies.

It is for their convenience also. Without the terminal they may not get the same level of custom.