Retailer charged me for using Switch Card in UK

sarahbrown

A few days ago, I went to a small local store, I had no money on me, but was advised I could pay by Switch Card, but there would be a 50p charge for doing so. There was a Link machine in the store, but that charged £1.50 for lifting money, so really I had no choice but to accept the 50p charge. This has never happened to me before. Does anyone know if this is legal?

LittleVoice

Yes, it is legal.

regularsaver1

Its because they are charged by their business bank for every debit / credit card transaction - 30p per transaction and up (dpending on their bank and turnover)

some indians and chinese's charge too

Butlers1982

small local store

Says it all, they are all struggling to compete with Big stores and have to find a way of getting more funds

rosysparkle

Not necessarily get more funds, just cover their costs in accepting debit/credit card payments. The company for which I work is charged 35p for every debit card transaction and 2% for every credit card transaction, plus the cost of the machine rental.

dunstonh

Are you sure its legal? It is for credit cards that is for sure but when debit cards first came out and the ruling was made that stores could charge more, it only applied to credit cards and debit cards were exempt.

Ive been out of banking for a while so it may have changed.

regularsaver1

I think its legal where they offer it as a service - I suppose smaller shops and restauarants do not have to take cards, and are charged for having merchant services by their bank

sarahbrown

Ok, so it may be legal, but I still can't get over it! I always use my card and I've never been charged. I've heard of being charged for using credit cards, but never Switch. I suppose it's only 50p. I've learned my lesson, I just won't be going back to that shop. Thanks for all replies.

Biggles

regularsaver1 wrote: »

I think its legal where they offer it as a service - I suppose smaller shops and restauarants do not have to take cards, and are charged for having merchant services by their bank

Surely, all that applies to every shop? Card acceptance isn't imposed on stores above a certain size....

olly300

regularsaver1 wrote: »

I think its legal where they offer it as a service - I suppose smaller shops and restauarants do not have to take cards, and are charged for having merchant services by their bank

All merchants that means all retailers whether on or off-line are charged a flat fee per debit card transaction.

Whether they chose to pass it on is up to the retailer.

Most retailers i.e. Tesco's, shops on ebay include the cost in their pricing structure as they know getting people to spend a lot is easier if you let them pay by a number of methods. However others including low cost airlines (who claim they can't afford it), and small retailers who cannot afford to do this and stay competitive charge people extra for paying this way. They all clearly display the fact that they are going to charge you to pay this way transaction before you pay.

The only reason I know this is I've spoken to small business owners who operate both on and off line, and they say how difficult it is to be competitive as the banks if you are a business charge you for having a merchant facility on your business account, hiring the equipment as well as per transaction. The pricing structure depends on the number of monthly transactions you have and either way the banks don't lose.

regularsaver1

Many business banks have offers, but they don't neccessarilty look to review their business banking