Credit Card charges made by Merchants

miser2013

I would be grateful if someone would clarify as to the legitimacy of charging to use a credit card? I seem to remember the rule Visa & Mastercard used to apply forbade it and merchants could loose the service if they charged when cards were used? It appears to be on the increase and when I questioned my insurance broker about it I got some very evasive answers of which none were satisfactory. 2.5% - 3% is a hefty addition to anyones profits and a substancial loss to the purchaser.. May we start stamping our feet on this?:mad:

dzug1

Mnay years ago the competition commission or such body ruled that Visa/Mastercard's rule forbidding merchants to charge extra was anti-competitive and ruled it unenforceable. So it's a legitimate charge.

So no there's not much point in jumping up and down about it.

And 2.5% is not a hefty addition to profits if that's what the merchant is charged in the first place,. Amounts vary but some will certainly get charged that.

grumbler

dzug1 wrote: »

Mnay years ago the competition commission or such body ruled that Visa/Mastercard's rule forbidding merchants to charge extra was anti-competitive and ruled it unenforceable. So it's a legitimate charge.

How about "Card surcharge ban moves closer " then?

miser2013

Ok, thanks for the enlightenment. I struggle to believe that a 2% charge is justifiable by some and not others, I spend £200 at the supermarket and there is no charge, all high street shops in my experience do not charge and yet on-line merchants with far reduced overheads by comparison sneak in & stiff you with it! One needs to remember when pricing against the high street that there are on-line "sneak fees".

reclusive46

miser2013 wrote: »

Ok, thanks for the enlightenment. I struggle to believe that a 2% charge is justifiable by some and not others, I spend £200 at the supermarket and there is no charge, all high street shops in my experience do not charge and yet on-line merchants with far reduced overheads by comparison sneak in & stiff you with it! One needs to remember when pricing against the high street that there are on-line "sneak fees".

Merchants actually get charged more by Visa and MC for card not present transactions (Online, phone and manual key entry transactions) because there is more risk. American Express is the exception and doesn't normally charge any extra.

jonesMUFCforever

Tesco and the like factor in the pricing of credit cards into their till prices - other retailers give you the choice of paying by credit card (but with a surcharge) and give you an alternative.
If you really don't like it take your business elsewhere.

grumbler

...or just look at this as if it was a discount for paying by cash or a debit card.