Card surcharge - cashless society?

doberryfirkin

Just been to the shops and wanted to pay for something for £2.50 with a debit card (note-not credit). I was informed there was a 50p charge for purchases under £5 for all card transactions. Is this right? I thought debit didn't attract a charge? Given we are being told to ditch cash for cards is this a sign that the cashless society is just a ruse to rip off the consumer even more?

tberry6686

The banks charge retailers for these transactions. Under £5 and the charge may well be more than the retailers profit and so they may be making a loss on these sales without a surcharge.

chattychappy

It might well cost the shop 50p, who knows. It gets tricky if you factor in hire of PDQ machine, time taken to process the transaction (during which time a queue is building).

There again, cash handling is expensive too.

Personally for low value transactions of this type, I use cash or contactless.

Perhaps British people have become too used to "free banking". In many countries it is the norm to charge for transctions whether or not you are overdrawn. I pay on on my business account. All these systems cost money.

So perhaps think yourself lucky that you're not paying the bank as well!

doberryfirkin

Thanks. I guess I was 'lulled' into thinking that debit cards were just a replacement for cash. Since I have yet to find a vendor who charges an additional % on top of cash (except of course the dreaded 'service charge') just for the privilige of buying something I thought debit cards were also 'free to use'. Will think again. Just hope that we don't ditch cash.

bsms1147

Depends on where you buy from. Tesco for example will happily let you put 1p on a debit or credit card, without any additional fees.

doberryfirkin

bsms1147 wrote: »

Depends on where you buy from. Tesco for example will happily let you put 1p on a debit or credit card, without any additional fees.

Yes I guess it's the principle. We are being driven down a 'cashless' road but it looks like when that's achieved vendors will have found another way to add charges.

eskbanker

doberryfirkin wrote: »

we are being told to ditch cash for cards

doberryfirkin wrote: »

We are being driven down a 'cashless' road

This is an exaggeration, nobody has told me to ditch cash for cards!

Stompa

http://www.thisismoney.co.uk/money/cardsloans/article-2363930/Why-pay-use-credit-debit-card.html

sinizterguy

Vote with your feet.

I avoid places that place minimums or surcharges for credit card use as much as possible.

It's simple enough to price it in, if you care to out some thought into it.

Contact less is much quicker than counting out change penny by penny, while talking about the weather. While very common, neither are things I am appreciative of when queuing up behind the recipient of this service.

Even without contact less it doesn't that long.

I am well aware of the costs, running my own business and choosing to accept credit and debit cards, including American Express.

lisyloo

Some places might not want to subsidise card users by spreading the cost out onto other customers.
It's entirely the choice of the retailer and your choice to go elsewhere.

RMS2

lisyloo wrote: »

Some places might not want to subsidise card users by spreading the cost out onto other customers.
It's entirely the choice of the retailer and your choice to go elsewhere.

And good on the retailers that do charge.


Nothing worse than being behind someone, who starts faffing about with a card payment for £2.