MSE News: Credit and debit card fee clampdown begins

mouthyman

lle wrote: »

Has the legislation a couple of years ago on limiting excessive charges on debit and credit cards really changed anything?
A couple of weeks ago we found that to pay a restaurant bill with a DEBIT card would incur a flat rate charge of £2. As the bill was just over £50, this represented almost 4% charge. I don't recall seeing the propped up cardboard handwritten sign informing us of this on the desk when we went in - or perhaps someone had been standing in front of it. How does this square up to a processing charge of 20p? We managed to scrape up enough cash to pay in cash on principle. (The only ATM in the village was at the same establishment and guess what it, it would have charged a fee to get cash out even though our debit card is from a major bank in the Link system.)

I hope the establishment thought through this plan very carefully,before they put the charge onto the end of the bill - which is always scrutinised?

They must have made more profit than £2 from you £50 meal - which is good. They did not have to charge the £2 extra as you paid in cash - in the end - which could be good?

They might have lost a customer from which they will never again make a profit from - all over £2 debit card fee! This is bad for the trader.

Hint to traders: Include an allowance for card transaction costs within your pricing. Thus you will get a lot more trade as paying doesn't hurt anything like as much when the bill is paid by card rather than cash. Oh - and what if a Trader got robbed / or has a staff member taking cash? Card transactions don't get effected by theft anything like as much

O_Miserly_one

It is 2016, February. Just been charged 50p for a £12 debit card transaction. Is this still fair and legal under the revised rules :question:

Former_MSE_Helen wrote: »

"Firms will no longer be able to charge excessive credit and debit card fees when new rules come into force tomorrow..."

Read the full story:

Credit and debit card fee clampdown begins



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mouthyman

Probably legal, probably not fair due to the costs more likely being 20p flat rate per transaction? So 4.2% added to the cost of your goods / service from the trader.

I guess the only way to make traders realise they have to put all the costs within the price charged - no matter how you pay - is to get to the till, find out about the surcharge, give the trader 1 last chance to back out of the charge. Then walk out of the shop.

He has just lost 100% of income that seconds before he thought he was going to take as a sale. Some of that income covered the cost of getting the goods to the till and the residue was his profit .... that has just walked out of the door.

DonnieH

I've just been charged 2.5% online for booking a short break (lakedistrictlodgeholidays) using my debit card.

Before I clicked 'pay now' it listed credit cards with an additional fee but not debit cards yet I was charged. Is this legal?

mouthyman

My first thoughts are:

Did the 2.5% definitely come from Lake District Holidays and there was not a mix up between cards?

Going on the basis that you used the debit card, then approach them asking why this happened? I would have thought they will be dismayed if they heard from you nicely that 2.5% has been added when that is not their intention.

If they do intend to charge 2.5% when using a debit card, then ask for a full refund on the grounds that you have been misled. Do CTRL+ALT+PRINTSCREEN and paste the picture into a word document so you have the proof you need.

You asking for a 100% refund will bring home to traders that 2.5% extra for card payment makes a 100% sale walk away from them.

DonnieH

yeah heard back from them. They said they checked their records and I selected credit card and not debit. Don't think so as it was clearly displayed what each of the fees were.
In any case they asked me to prove my debt card details and would refund but do wonder how many people get caught out by this.

harlan

Well here we are September 2016 and still being charged credit card fees well in excess of the 0.3%. Retailers are taking advantage of customers especially travel companies where transactions are hundreds of pounds and still charging 2.5%+. I think now we need to shame these companies or better still strengthen the legislation so that a maximum of 0.5% is acceptable.

jonesMUFCforever

harlan wrote: »

Well here we are September 2016 and still being charged credit card fees well in excess of the 0.3%. Retailers are taking advantage of customers especially travel companies where transactions are hundreds of pounds and still charging 2.5%+. I think now we need to shame these companies or better still strengthen the legislation so that a maximum of 0.5% is acceptable.

I think you have misunderstood the new rules.

NON_BEDROOM_BLISS

I have just arranged for fitted bedroom furniture- I intend paying cash- once the initial planner came out I had to pay a deposit, which had a 2.75% charge for paying by debit card- this is daylight robbery. I next have to pay again when the surveyor comes , then again another 2.75% on the remaining balance on completion of works. I envisaged paying a deposit, then the final payment, all in all they will betaking over £100 from me. I work hard for my money and in todays climate saving is hard.
I do not have a cheque book, I distrust on-line banking, having been a victim of identity fraud twice, and as far as I am concerned, with a debit card, the transactions will not go through if there is no money in your account.
I fully intend sending a strong letter of complaint to the company, writing to my MP and also 38degrees as a possible campaign.
FoR the surveyor payMENT and final payment, I am going to give them cash all in £5 notes- that will take up their time , and avoid me having to pay an absurd charge on three payments I did not want easy terms - just a complete cash TRANSACTION. if I HAD OPTED FOR THEIR BUY NOW PAY LATER SCHEME, I WOULD NOT BE CHARGED ANYTHING IF I SETTLED THE FINAL BALANCE BEFORE THE CUT OFF DATE.

jonesMUFCforever

NON_BEDROOM_BLISS wrote: »

I have just arranged for fitted bedroom furniture- I intend paying cash- once the initial planner came out I had to pay a deposit, which had a 2.75% charge for paying by debit card- this is daylight robbery. I next have to pay again when the surveyor comes , then again another 2.75% on the remaining balance on completion of works. I envisaged paying a deposit, then the final payment, all in all they will betaking over £100 from me. I work hard for my money and in todays climate saving is hard.
I do not have a cheque book, I distrust on-line banking, having been a victim of identity fraud twice, and as far as I am concerned, with a debit card, the transactions will not go through if there is no money in your account.
I fully intend sending a strong letter of complaint to the company, writing to my MP and also 38degrees as a possible campaign.
FoR the surveyor payMENT and final payment, I am going to give them cash all in £5 notes- that will take up their time , and avoid me having to pay an absurd charge on three payments I did not want easy terms - just a complete cash TRANSACTION. if I HAD OPTED FOR THEIR BUY NOW PAY LATER SCHEME, I WOULD NOT BE CHARGED ANYTHING IF I SETTLED THE FINAL BALANCE BEFORE THE CUT OFF DATE.

Why not take your custom elsewhere telling them exactly why?