Barclays Contactless Complaint - am I nuts?

WizardDad

Hi all, my first post so be nice!

Really interested in peoples views here - am i nuts or is this bank being irresponsible and not upfront with customers....

Barclays has research information that shows that customers using the contactless card technology (which allows quick purchases upto £15) will tend to spend MORE per shop and increase the FREQUENCY of purchases.

So the question is ...do you think they should at least inform us? So we have a more conscious awareness. Especially as the technology is just introduced to us in our cards whether we choose it or not. Its a serious nudge by the bank to get it into common use by all.

They put a lot of effort into telling us how it works, how safe it is from fraud and how it could make our lives more convenient - eg no longer will I need to carry coins to buy the milk etc. None of this I disagree with. I like carrying and using actual money (and will be sad to see it turn completely to plastic) but I ve no doubt the technology will be convenient (seems to be evidence based!). However my point is they should warn people and increase awareness that we are likely to spend more by using this tech. Maybe important for some people.

How do I know?

Because they've put a business case for retailers who have to purchase the card reader which suggests they are likely to increase their profits by this

Heres their quote; (I cant post the link as a new forum user but have a look at contactless.com. See Preparing business case page 2.)

"2. Increased Revenue

As with any payment card, when consumers pay using Contactless technology instead of using cash, they tend to spend more and to spend more frequently."

Anyway I put a complaint in 2 months ago to Barclays saying I wanted them to inform customers. They tried to placate me but I persisted. I asked for all correspondance in writing or email as I didnt want a PR phone call and excuses. I m still waiting for their final deliberation - due by tomorrow in the post 24th march.

I dont think I being unreasonable.

agrinnall

Caveat emptor.

briankelleher

Personally, I don't see any reason for them to warn people. The piece you quoted states "As with any payment card", which means this is not unique to this card (and it's not), it's common to all cards. And what would the warning look like? "WARNING, JUST LIKE THE DEBIT AND CREDIT CARDS YOU ALREADY HAVE, THE INCREDIBLE EASE OF USE OF THIS CARD WILL MAKE IT EASIER FOR YOU TO SPEND MONEY"?

IMHO, in response to the thread title, yes, you're being a bit over the top. It's not like car manufacturers have to warn people that newer cars will make them driver more, or larger engines will make them drive faster.

chattychappy

WizardDad wrote: »

Barclays has research information that shows that customers using the contactless card technology (which allows quick purchases upto £15) will tend to spend MORE per shop and increase the FREQUENCY of purchases.

So the question is ...do you think they should at least inform us?

No - it's their information.

WizardDad wrote: »

So we have a more conscious awareness. Especially as the technology is just introduced to us in our cards whether we choose it or not. Its a serious nudge by the bank to get it into common use by all.

So is most kinds of advertising.

WizardDad wrote: »

However my point is they should warn people and increase awareness that we are likely to spend more by using this tech. Maybe important for some people.

I understand your point - but people can still decide for themselves.

WizardDad wrote: »

"2. Increased Revenue

As with any payment card, when consumers pay using Contactless technology instead of using cash, they tend to spend more and to spend more frequently."

That does make sense. Time will tell.

WizardDad wrote: »

Anyway I put a complaint in 2 months ago to Barclays saying I wanted them to inform customers.

You might want this, but you have no grounds for complaint in my opinion.

WizardDad wrote: »

They tried to placate me but I persisted

But you don't tell us what they said.

WizardDad wrote: »

I asked for all correspondance in writing or email as I didnt want a PR phone call and excuses.

I think you are lucky they are engaging at all - and in the circumstances I would be grateful for any kind of dialogue with them.

WizardDad wrote: »

I dont think I being unreasonable.

I think you are being ridiculous. This is their commercial information and it is none of your business how they choose to promote their products provided they stay within the law.

You seem to think that because a company has a plan which involves getting more custom, then it is necessarily bad for those customers and they should be warned.

richard734

Maybe they should put warnings on cash as well, especially £5 notes.... or 2p coins - Warning - the useless ness of teh 2p can increase charitable giving....

[Deleted User]

WizardDad wrote: »

am i nuts or is this bank being irresponsible and not upfront with customers

I think I know the answer to this one. You're nuts. Seriously.

pmduk

I'm afraid I'm with the others on this.

WizardDad

Ha

well a small consensus! Thanks for the replies. Looks like the finance sector is having a quiet morning

Caveat emptor. Buyer beware. Totally agree, but the bank has chosen to keep the facts from the buyer so the buyer isnt aware of this issue.

Of course the banks dont have to support people manage their finances and maybe they dont see that this could impact the most vulnerable consumers, they just have to make profits. As always it ll be the most disadvantaged in the community that will suffer. Fine but we all pay in the end.

[Deleted User]

The argument to the retailer will go something like this -

- people spend a little more on cards than they do on cash, because you don't see the money physically leaving your pocket
- a contactless card will encourage people to buy that coffee/newpaper/pint of milk that they don't have the cash for
- if you, as a retailer, get one of these readers and your competitor down the road doesn't, people will be more inclined to come to you when they need to buy something quick.

This really isn't going to make people think - "Great - the corner shop has got a contactless reader. I'm going to go and buy a plasma screen."

You'll see slightly larger and more frequent transactions, a move from cash to plastic, swings from non-contactless to contactless cards, and a retailer competitive advantage/disadvantage opening up.

chattychappy

Seriously, I have used contactless payment overseas for a while (Octopus in Hong Kong, Easycard in Taiwan etc.) I like it because:

1) It is faster than using cash. They ring up the amount, card on the pad, instant deduction. No waiting for authorisation. Helps keep queues shorter. Many places take credit card now, but for small amounts I don't like to use them because of the delay. With this technology I can - hence airmiles, longer credit, all the advantages of CC usage.

2) Faster than normal CC usage. Again better for queues etc. Yesterday afternoon I was in Waitrose. Forgot my cash.. paid on MBNA. £2.27. Just took so long!

3) More secure compared with cash. Cash when dropped is gone for ever and people often carry alot around. This thing is like having £15 in your wallet that gets topped up everytime it runs out. If you drop it, it might be handed in (more likely than cash) or stopped before usage. If stolen, the contactless loss is limited to £15 and will probably be the banks, not yours.

4) More secure than CC. Sure you can get £15 without a PIN. But that's all you can get. For small transactions I think it is better that the card stays you in your hand and no PIN is used. Reduced chance of the card being cloned, the PIN being observed etc.

5) Cleaner than cash. Personally I like the idea that I'm not handing over cash, getting change back. Especially in coffee shops etc. Just seems more hygienic.

briankelleher

WizardDad wrote: »

Ha

well a small consensus! Thanks for the replies. Looks like the finance sector is having a quiet morning

Caveat emptor. Buyer beware. Totally agree, but the bank has chosen to keep the facts from the buyer so the buyer isnt aware of this issue.

Of course the banks dont have to support people manage their finances and maybe they dont see that this could impact the most vulnerable consumers, they just have to make profits. As always it ll be the most disadvantaged in the community that will suffer. Fine but we all pay in the end.

What facts? Your point that this card will allow people to spend more is moot, as this is not unique to this card. There's no fact here, it's just a general point about card purchases that you've chosen to misinterpret and make about this new contactless card. If a customer already has a debit card, there is no impact to their finaces, no impact on vulnerable customers, no impact on the "most disadvantaged in the community" - again, you're completely misreading the statement you quoted. I have to wonder if your complaint is about this new card or actually about debit and credit cards in general, in which case you should have made this "complaint" in the mid 1980s when debit cards were introduced.