Credit card processing fee

Sat_Khattra

I read on this site that the processing fee for buying a car on a credit card dropped from 2% to 0.3% in December 2015. Does this apply to all processing fees from any supplier/business or just on car buying?

Thanks.

pvt

Sat_Khattra wrote: »

I read on this site that the processing fee for buying a car on a credit card dropped from 2% to 0.3% in December 2015. Does this apply to all processing fees from any supplier/business or just on car buying?

Thanks.

Does not sound correct.

Where did you read this - can you quote it?

Superscrooge

The below link might help answer your questions

http://www.cardswitcher.co.uk/2015/10/2015-card-processing-price-changes-review/

As I understand it, this applies to all Visa and Mastercard credit card use. The processing fee charged to retailers by the card providers has dropped to 0.3% But I'm not aware of any legislation that prevents retailers from charging customers more than 0.3%

Sat_Khattra

Thank you Superscrooge, very helpful.

System

Merchants will have costs above that interchange fee.

eskbanker

Superscrooge wrote: »

The below link might help answer your questions

http://www.cardswitcher.co.uk/2015/10/2015-card-processing-price-changes-review/

As I understand it, this applies to all Visa and Mastercard credit card use. The processing fee charged to retailers by the card providers has dropped to 0.3% But I'm not aware of any legislation that prevents retailers from charging customers more than 0.3%

Heng_Leng wrote: »

Merchants will have costs above that interchange fee.

The relevant legislation is The Consumer Rights (Payment Surcharges) Regulations 2012, which, although not setting out a fixed percentage, does mandate (in clause 4) that "A trader must not charge consumers, in respect of the use of a given means of payment, fees that exceed the cost borne by the trader for the use of that means".

Yes, there will be other costs over and above interchange but assuming these are relatively static then if the interchange rate drops, a trader must pass on those savings to the customer.