£5 Minimum Spend on Chip & Pin?

he6rt6gr6m

Sweet Mother... thats a lot of outgoing!

So, in the case of stores that offer cash-back, its understandable where some of the charge comes from. Do these stores make profit on top if you decide to get cash-back with your purchase?

pmduk

Of course there is the point that taking payments by cash is hardly free for the retailer. The next trick will be a service charge for using a checkout. I expect Tesco already have it planned.

Jakg

he6rt6gr6m wrote: »

So, in the case of stores that offer cash-back, its understandable where some of the charge comes from. Do these stores make profit on top if you decide to get cash-back with your purchase?

Accepting cash is still vulnerable to wrong change, loss, theft, security etc. Securicor only take £20k at a time, so for Tesco's etc they pay a LOT to have their money looked after. Cashback costs them, but also saves a lot of processing of money...

blue_monkey_2

he6rt6gr6m wrote: »

Sweet Mother... thats a lot of outgoing!

So, in the case of stores that offer cash-back, its understandable where some of the charge comes from. Do these stores make profit on top if you decide to get cash-back with your purchase?

It is yes. I could offer cashback on debit cards but the customer has to buy something - the thing they are buying usually pays for the fees and the cashback is on top. The rate on a Debit Card is usually fixed at somethinglike 30p and if a customer is giving cashback they would be banking less in cash - thus saving them time counting, banking fee, security, etc so for a large cash handling company such as a supermarket it makes sense to offer cashback really.

There are so many charges for this, that and the other but the customer does not really see or appreciate what we have to pay really. I work from home so at least I do not have Business Rates and Rent to pay as well.

DCFC79

Its totally fine to have a min spend of £5, only place i saw it was in a book shop once and i cant say ive seen one in place since then, ive not come across a min spend in a supermarket eg sainsburys, tesco, morrisons

Snakeeyes21

xocbc wrote: »

A sale of under £5, after bank charges and or/processing percentage is likely to result in the retailler making a loss on the sale (perhaps not with food, but could easily do for other items), hence the limit.

I very much doubt they will be making a loss, even small retailers can get rates of 25p for debit cards and 2% for credit cards, a large company like wetherspoons is likely to be paying <10p for debit cards and <1% for credit cards.

Its a con to make you spend more.

UK2010

Snakeeyes21 wrote: »

Its a con to make you spend more.

What were you going to buy? 3 individual chips?

boliston

xocbc wrote: »

....

So for example, if Streamline take 50p for the use of a debit card, and then the bank takes 40p for the resulting bank credit, thats 90p for the card swipe.

Out of a £5 sale, 90p is a hefty %, and is likely to eat any margin the retailer has made......

A business will get a single credit for the entire day's card transaction so that 40p bank credit fee will be typically split between several hundred (or several thousand if a larger business) swipes taken that day.

he6rt6gr6m

Wait, so its a set price per day for all uses of Chip and Pin? Or a percentage?

Im getting confuddled.

UK2010

he6rt6gr6m wrote: »

Wait, so its a set price per day for all uses of Chip and Pin? Or a percentage?

Im getting confuddled.

Seeing you started the thread and seeing it's maybe something that you get worked up about can I suggest something???

Get cashback at a Supermarket or use a cashpoint!

Another completely pointless vent!