13 JAN 2018 legislation

wake≈turbulence

In view of the forthcoming legislation, removing the option to make surcharges for using a credit card or debit card by some merchants is likely only part of the full solution. so does anyone know if it will address the following:

Presumably payment for goods or services paid by credit card can still result in a cost effected by quoting a charge or a charge policy that states that a discount will be or may be offered for payment by debit cards or cash.

Another aspect of this is that small retailers would have previously been inclined to stipulate a minimum purchase amount to avoid a surcharge. Once they can no longer charge a surcharge under these circumstances, presumably there is no prohibition in being able to refuse altogether to accept payment by credit card for purchase amount less than say £5 or £10.

Something is better than nothing of course, but legislation is rarely if ever perfect, and quite often less than useless.

[Deleted User]

A discount for cash would be the same as a surcharge for credit. So no.

The likely impact is that some smaller retailers will stop taking cards, and others will increase prices across the board to absorb the card costs.

Ebe_Scrooge

I live in a very small rural community, and many of the local traders have never accepted either debit or credit cards - I don't know whether that's due to the fees, or just the cost of the card-reader terminal itself. You quickly get used to it, and you just make sure you get some cash out when you're in town.


But if retailers are no longer allowed to charge fees, yet still get charged themselves by the card companies - I suspect they'll simply put their prices up to cover the fees.

wake≈turbulence

Thanks for the reply. I'm sure you are correct, although I dare say someone will figure out a loophole, or will attempt to test the law one way or another.

Deleted_User wrote: »

A discount for cash would be the same as a surcharge for credit. So no.

The likely impact is that some smaller retailers will stop taking cards, and others will increase prices across the board to absorb the card costs.

tastyhog

Deleted_User wrote: »

A discount for cash would be the same as a surcharge for credit. So no.

The likely impact is that some smaller retailers will stop taking cards, and others will increase prices across the board to absorb the card costs.

I highly doubt it, rates have been capped now, so when existing contracts are up for renewal there's no reason any merchant can't get rates at around the 0.39% for debit and 0.69% for credit cards, there is a 2p authorisation fee for each transaction, which I believe are waived for contactless payments, hence the push by businesses for customers to use it.

so even on lower purchase sums it shouldn't eat in to their profits.

you're talking a 5p fee on a £5 spend, or a 3p fee on a £2 spend.

it's nothing, and if their profits are affected by that they seriously need to rethink their business model, or add a penny to items across the board.

chattychappy

tastyhog wrote: »

I highly doubt it, rates have been capped now,

What cap are you thinking of?