Tesco CC Upgrade

OllyM

chattychappy wrote: »

I doubt it's an issue for you now, but I suppose there might come a time when some retailers refuse it or insist you pay extra - especially those online retailers that already charge for different types of plastic.

That won't happen - as a retailer you aren't allowed to refuse a World Mastercard if you are happy to accept a normal Mastercard!

chattychappy

OllyM wrote: »

That won't happen - as a retailer you aren't allowed to refuse a World Mastercard if you are happy to accept a normal Mastercard!

I doubt very much that such a condition is enforceable. There was a time when CCs insisted that merchants couldn't charge extra for credit cards over the normal cash price (as a merchant I signed such a contract, then ignored it). It was held not to be enforceable, mainly for competition reasons and now it's written into law. (They can still prevent merchants charging more than their cost of accepting a card. Eg if the fee is 4%, they can be prevented from charging more than 4% as a premium.)

Commercially I'm sure normal shops wouldn't refuse World Mastercard. But I do think online retailers might pass on extra fees.

OllyM

I expect it is enforceable, if somebody reports the practice there's nothing to stop their bank from terminating their merchant account and they won't be able to process cards!

From a Streamline document about the new cards:

11. Can I refuse to accept any of the cards with increased charges?
No.

The premium is 0.6% with Streamline for World MasterCards anyway, I doubt any online retailer will turn away a sale for that

chattychappy

I appreciate the T+Cs say that - but it doesn't mean it has legal effect.

Just as if you buy something from a shop and the T+Cs say "no refunds" - that part of the T+Cs have no legal effect.

T+Cs can be modified by terms implied by law. As I mentioned, when I was a merchant, I signed a contract that said I couldn't charge extra for accepting credit cards. I just ignored it (aware the legality had been challenged in court) and one of my customers complained to Barclays. Barclays threatened to remove my facility unless I dropped differential pricing. I referred them to the case and it was the end of the matter. It's subsequently been written into a statute.

I think the situation over World Mastercard is analogous. If the charging structure to merchants is different, I don't think a term that insists that merchants accept it on the same basis would be enforceable.

Ankh

I have got this letter too. The issue for me is the 1 point per £2 as I get 1 point per £1 in Tesco and 0.75 per £1 everywhere else currently. That’s what makes it worse for me I believe?

chattychappy

Just for completeness, this is the regulation I mentioned that prevents CC companies preventing price discrimination: http://www.legislation.gov.uk/uksi/1990/2159/article/2/made. Agreed this situation is a not so clear.

OllyM wrote: »

From a Streamline document about the new cards:
The premium is 0.6% with Streamline for World MasterCards anyway, I doubt any online retailer will turn away a sale for that

You might be right for many transactions, but equally I'm not sure how many customers would change their mind over a 0.6% surcharge. I'm sure Mastercard are very concerned that surcharging doesn't happen because instantly people wouldn't want these cards. It's not as if they have the supposed cachet of Amex Chargecards (or whatever).

Incidentally, a travel agent I know typically makes as little as £20 on a £1000 flight ticket. An extra 0.6% would be £6 of that £20. She always passes on whatever she is charged. An airline I know discounts tickets 6% (before airport taxes, APD etc) to travel agents. So on a £200 ticket with £50 taxes, the agent would get £12 discount. If, say, they pay 3% for a normal credit card, then the charge would be £7.50. Just £4.50 profit. An extra 0.6% would be £1.50 - a third of the profit. And that assumes they are charging the standard airfare.

So I think for some low margin business, people might have to pay extra once these cards become more established.

Fruit_and_Nut_Case

Ankh wrote: »

I have got this letter too. The issue for me is the 1 point per £2 as I get 1 point per £1 in Tesco and 0.75 per £1 everywhere else currently. That’s what makes it worse for me I believe?

I think that's what I get in Tesco at the moment. Plus the normal Clubcard points, of course.

I tend not to use the card anywhere else.

MinMoz

I agree that it seems like a bad deal for people who use the tesco card to build up points.

Have been looking on the internet and am surprised that more people are not against getting the updated card.

POPPYOSCAR

Ankh wrote: »

I have got this letter too. The issue for me is the 1 point per £2 as I get 1 point per £1 in Tesco and 0.75 per £1 everywhere else currently. That’s what makes it worse for me I believe?

I don't understand this as on the Tesco website is states that collecting the clubcard points will stay the same.How have you been getting 1 point per £1 the standard rate is 1 point per £2.

POPPYOSCAR

Thanks for posting this.

I too received the letter today and didn't take much notice so your post has prompted me to look into it.

I went on the Tesco website and looked at all the questions and answers
regarding this change and I can see no reason not to have the new card,so I will gladly accept it when it comes along with the extra 650 points unless anyone knows otherwise.

Thanks