50p Charges On Small Card Transactions?

peteroliver81

Does anyone else ever get told they will be charged 50p to use their credit or debit card on transactions under a certain amount? Sometimes it's under £10, sometimes under £5 and normally in bars/pubs but the reason is always the same, some vague muttering from the barstaff about bank charges etc.

I just wondered if this is a legitimate charge as I don't think I've ever experienced it in a shop.

MarkyMarkD

It's perfectly allowed. Shops don't normally do it, but smaller ones do and a lot of pubs do.

The charges they pay for debit card transactions tend to be fixed so it is fair that they charge a fixed 50p.

The charges they pay for credit card transactions tend to be percentage based, so it's rather less justifiable, but it's probably easier for them to have a single charge.

peteroliver81

Interesting. Well thanks for clearing that up.

worrypants

the costs to small business of accepting cards is astronomical

there is a monthly rental of the equipment( hundreds and hundreds of pounds to buy it)
plus a standing charge per trasnaction then a percentage

costs are negligable for a large business but for small it is crippling

in fact the 50p no where near covers the true cost

little pubs/shops etc might only do 20 or 30 card transactions a month and the true cost for them would work out at around £1.40 per transaction this results in a loss which cant be sustained

nomoneytoday

Either shop somewhere else where you are not charged, or use another payment method if possible

Mikeyorks

peteroliver81 wrote:

I just wondered if this is a legitimate charge as I don't think I've ever experienced it in a shop.

My Dentist has just started accepting payment by plastic .. and is charging 50p (extra .. that is!:D - nice clean smile!).
Intends to stop accepting cheques in July - so will find it difficut to maintain the charge then. If he tries to keep the charge .. he'll get more pain from me .. than he normally gives.

Karen1980

I know some of the smaller shops in town dont take card payments for under £5. I have been charged 50p before for using my card but \i didnt realise I had no money in my purse at the time!!

JonathanA

We run a small business and have the facility to accept debit and credit cards. We're charged for the rental of the terminal and 2% for all credit card transactions. Debit cards cost us 28p. We don't pass on any of that cost to our customers on the basis that by offering the facility to pay by card means that more people may buy our craft based product. However, we do ask that if people are paying for an item by card, the minimum payment is £10.

It is a legitimate charge and whilst ever people will pay it, people will charge it. The only thing i would say is that it costs us less to have a debit card transaction than it does to pay a cheque into our business account, so we're always pleased if people offer a debit card to pay. Remarkably, it is also cheaper for people to pay by debit card than it is by cash if we're paying that into the business account too!

bucksliz

Ikea charge 70p for credit charge transactions which I think is too much. They are a huge concern and could loose these charges if they wanted to. The other day I paid for my shopping in Ikea with a gift card and made up the rest with my credit card. The SA said it was too late for her to put the 70p charge on the transaction and would I pay her 70p cash! I said.........no!

yummymummy79

As long as they tell you before they actually put the payment through then it's fine. If they put it through and then tell you it's more then it's too late and you've got a case against paying it.

looneyleo

I run my own business and bank charges are horrendous as well as debit/credit card transcations. Joe public really don't appreciate the free banking they get for current accounts working in good order etc! We had to get rid of our card machine as it just cost too much money and customers grumbled about any additional charge. Receiving cheques from customers is also costly CASH IS KING!