We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Debit card minimum spends.

124

Comments

  • Wow, lots of people with strong opinions on this, but just that, opinions. What i was looking for was facts. Since I started this thread i have had a response from Visa Europe about this matter. See below:

    Visa has certain regulations that all merchants accepting Visa cards must follow. One of those rules is that Visa merchants must accept all Cards properly presented for payment, therefore are not permitted to establish minimum transaction amounts,.

    If you run into a problem like this with a merchant, please notify your Visa card-issuing financial institution, Santander. Visa Member financial institutions have access to the appropriate Visa rules and regulations. They also have access to the Notification of Customer Complaint forms that should be used by the financial institution to document and file this type of complaint.

    So it appears that no matter how people try to justify this charging it is not allowed, certainly by Visa anyway. Im going to contact Mastercard and see what they say about it. Still not had any response from Santander yet on their position as a card issuer.

    I do agree that Small business DO get shafted by card transaction charges, but thats the cost of doing business these days. Just like tax, rent, utilities etc. What I dont agree with is the mindset that the easiest solution is to stick that to the customer rather than take it up with Visa/Mastercard etc. The retailer has the choice to apply for a merchant account and they know the charges before they accept the contract, it is an OPTIONAL cost for a retailer. If they know their customer trends and and have any kind of business acumen, they will know if a merchant account is worth while before entering into it.

    Any shop can refuse to serve you, which is their right. But customers can complain to their card issuer which is also their right.

    I have asked Visa to let me have their offical policy on card acceptance or an online resource so it can be viewed by anyone so you dont have to just take my word for it.
  • Whilst you may be 100% correct, that is a contract between VISA and the shop and nothing to do with you.

    You cannot tell the merchant they cannot charge you for paying with a card just because it is breach of a contract you are not party to.
    Thinking critically since 1996....
  • gordikin wrote: »
    What do ryanair charge for cc/dc transactions...forget the cornershop?

    Never used Ryanair, but i am guessing that a card fee is a booking fee of some sort? Im guessing they are trying to sell it off as service (same as when you ask for seats next to your other half, or a window seat or an inflight meal) and the charge appears as part of the total. Im also guessing you dont have a cash option as its all done over the phone or net. I heard that they are being investigated for this.

    My main point is that customers are forced to spend a minimum to use a debit card or the transaction is not accepted.
  • fluffnutter
    fluffnutter Posts: 23,179 Forumite
    Whilst you may be 100% correct, that is a contract between VISA and the shop and nothing to do with you.

    You cannot tell the merchant they cannot charge you for paying with a card just because it is breach of a contract you are not party to.

    As things stand at the moment that's indeed the case. However, the fact that the OFT has investigated suggests to me that profiteering from card charges rather than merely passing on the true cost to consumers is something that's inherently unfair.

    The recommendation is that debit card charges are outlawed within two years and that credit card charges must be representative of the true cost to the retailer or supplier. Threads like this will become a thing of the past!
    "Growth for growth's sake is the ideology of the cancer cell" - Edward Abbey.
  • antrobus
    antrobus Posts: 17,386 Forumite
    Beaverman wrote: »
    Visa has certain regulations that all merchants accepting Visa cards must follow. One of those rules is that Visa merchants must accept all Cards properly presented for payment, therefore are not permitted to establish minimum transaction amounts,.

    So under Visa rules, a merchant cannot specify a minimum transaction amount, but there is nothing to prevent a merchant from levying a charge on a transaction that falls below a minimum amount.
  • As things stand at the moment that's indeed the case. However, the fact that the OFT has investigated suggests to me that profiteering from card charges rather than merely passing on the true cost to consumers is something that's inherently unfair.

    The recommendation is that debit card charges are outlawed within two years and that credit card charges must be representative of the true cost to the retailer or supplier. Threads like this will become a thing of the past!

    Indeed, but what will the consequences be? A rise in price to accommodate the transaction charge. So we will actually be worse off as a result as those paying cash will now face higher prices too.
    Thinking critically since 1996....
  • Whilst you may be 100% correct, that is a contract between VISA and the shop and nothing to do with you.

    You cannot tell the merchant they cannot charge you for paying with a card just because it is breach of a contract you are not party to.

    My agreement with my card issuer mentions nothing about having to accept minimum charges in shops for use of my card. The retailer cannot impose clauses in a contract THEY are not party too.

    Ultimately, the retailer will win as they will refuse service, but if retailers are doing this in contravention of the merchant agreement then they are either ignorant of the t&c, or deliberately breaching them. Either way if people question it and raise awareness then maybe it will stop. Of course the other outcome could be that people just start using cash more which then means no money for card companies, perhaps they will look at reducing costs to smaller merchants. We can live in hope!
  • Beaverman wrote: »
    My agreement with my card issuer mentions nothing about having to accept minimum charges in shops for use of my card. The retailer cannot impose clauses in a contract THEY are not party too.

    But they are party to the contract of you buying from them.

    They can charge £1 extra for people wearing jeans, hardly a dispute with the jeans company!

    I think only the consumer will suffer if they are not allowed to charge a transaction charge for accepting cards. Seems a bit of a worthless crusade.
    Thinking critically since 1996....
  • fluffnutter
    fluffnutter Posts: 23,179 Forumite
    Indeed, but what will the consequences be? A rise in price to accommodate the transaction charge. So we will actually be worse off as a result as those paying cash will now face higher prices too.

    Of course! Retailers aren't going to lose profit are they! That's capitalism for you. I don't make the rules ;):D
    "Growth for growth's sake is the ideology of the cancer cell" - Edward Abbey.
  • bap98189
    bap98189 Posts: 3,803 Forumite
    Part of the Furniture 1,000 Posts
    I'm not sure where the cost of 15p came from, but unless they have a large number of daily transactions, most retailers will be paying more than that. When we started taking cards, we were offered various rates from different banks ranging from 40-50p. Then add in the additional charges from your bank for each deposit transaction, and finally the cost of renting or purchasing the card machine and the real cost of taking a debit card transaction could easily be in excess of 50p.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.