Credit card interchange fees 18 June 2017 at 7:36AM in Stoozing: free cash from credit cards 4 replies 4.2K views

Stevobis

In 2015 the EU introduced a new law capping credit card transaction charges at 0.3%. I booked a cruise with P&O and they charged me 1.5%. I told them it was illegal but they said their website clearly stated the charges and it shouldn't be a surprise to me. After a few wasted phone calls to their customer services team, I've now written to their CEO.

Any ideas how I can fight this. It's a small amount of cash but I'm annoyed that many companies are ignoring the law and ripping off consumers.

Steve

zx81

You're confusing the cap on interchange with the retailer costs.

Interchange is only part of those costs. They can pass those on but not make a profit on them.

Sparx

The interchange cap applies to the payment providers/banks providing the service to retailers and business, not to the retailers or businesses themselves accepting payment.

E.g. the likes of Worldpay (Natwest), Global Payments (HSBC), Barclaycard (Barclays) etc who provide card terminals or website payment gateways, charge businesses per transaction a set % or pence.

However being charged 1.5% for a transaction that only cost the business 0.3% (you don't know this for sure) does break the Consumer Rights (Payment Surcharges) Regulations 2012 - which specifically states:

Consumer_Rights_(Payment_Surcharges)_Regulations_2012 wrote:

A trader must not charge consumers, in respect of a given means of payment, fees that exceed the costs borne by the trader for the use of that means.

phillw

Sparx wrote: »

However being charged 1.5% for a transaction that only cost the business 0.3% (you don't know this for sure) does break the Consumer Rights (Payment Surcharges) Regulations 2012 - which specifically states:

http://www.headforpoints.com/2015/04/14/why-we-really-dont-know-what-the-impact-of-credit-card-interchange-fee-capping-will-be/

"The interchange fee is NOT the fee that most shopkeepers pay when they accept a credit card. That fee is set by the bank they work with and includes terminal rental and various other services, plus an amount to recoup the interchange fee. There is no obligation for banks to reduce the fees charged to shops at all."

CITRONELLA

phillw, can you help with advice on credit card charges?