MSE News: Some credit card users STILL being charged despite ban

chattychappy

It's an EU thing, but likely to stay. The government won't want to be seen bringing back "rip-off" charges.

If we're into banning things, I'd like to see service charges banned in restaurants (whether described as "optional" or not). I think the price on the menu outside should be what you're billed for. By all means leave a tip if you want to.

If I order something that says £10.80 on the menu, I don't want to be billed £12.15 whether or not tucked away it says they add 12.5%.

But now I'm completely OT.

Chrysalis

Its a mess, they should have just kept as it was, for the most part people had accepted it.

badmemory

I know one small business that no longer accepts cc. They used to charge out only the extra that streamline/worldpay used to charge them, & it was significant, they are fortunately in the position to be able to say debit card, cash or go elsewhere, it's up to you. Unfortunately not all businesses are in this position, so all of us will have to pay.

They should have stopped the likes of worldpay from charging the extra & not tried to pretend that the only fee users were charged was the interchange one.

eskbanker

badmemory wrote: »

They should have stopped the likes of worldpay from charging the extra & not tried to pretend that the only fee users were charged was the interchange one.

I disagree with this - the likes of WorldPay and other similar card acquirers are commercial organisations who provide payment processing services and quite legitimately expect to make a profit for doing so.

There have been quite a few posters on here in the past who seemed to be under the mistaken impression that merchant fees and interchange fees were one and the same when they clearly weren't, but the answer to that isn't to prevent acquirers from being paid for the services they provide! Even capping such costs would have been challenging....

Vehlin

real_sunfire wrote: »

Unfortunately this law charge will meant small retailers will stop taking credit or debit cards in the first place.

They reason why many charge 40-50p in the first place is this is the minimum fee that their card machine companies (acquirers) charge for the use of a card machine.

If your profit on a item is only 20p there is no way you will now accept a card for that purchase.

If the government wanted to be fair it would have also removed the minimum fees charged by the acquirers.

Instead a slightly higher percentage of the purchase amount could be charged by the acquirers.

This works in other places like Australia and New Zealand, why not here in the UK.

Regards,
Sunfire

They're free to use a different card provider. For instance iZettle charge a flat 1.75% fee on transactions. So a £2 purchase is going to cost them 3.5p rather than the 40-50p

chattychappy

Vehlin wrote: »

They're free to use a different card provider. For instance iZettle charge a flat 1.75% fee on transactions. So a £2 purchase is going to cost them 3.5p rather than the 40-50p

Yep and iZettle can be a right 'ole hassle. They have a tendancy to freeze funds and make you jump through hoops to get your money - and this is without any query from the customer. I stopped using iZettle for that very reason (except in emergencies). There is a real cost of accepting credit cards which goes beyond the simple quoted fees.

AllieKat

The number of people on here making the same mistakes small businesses make is shocking:

1. Accepting cash isn't free. Quit pretending it is, and it usually costs as much or more than accepting cards, as long as you have a reasonably fair processing contract.
2. Costs of doing business should be made all-inclusive. Not just this, same for 'service charges' at restaurants. Well, I'm not exactly going to go get my own food from the kitchen, now am I? Just put it in the menu prices! Oddly, in my case, it hurts them. If the service is poor, I'll ask them to remove this charge. I'll never tip if they have a service charge. But you know what? I'll usually tip *something* even for poor service, and for great service I'll tip far more generously than these charges...
3. Want to quit taking cards? Goodbye, quit. Don't talk about it - do it! I've always had respect for a business that feels the value of accepting cards isn't worth the cost. The card networks and processors are offering a service to you. Not worth it? Don't buy it. Doesn't mean I'll shop with you, but I might - if I happen to have cash. If you have a surcharge? Not a chance, at best you were breaking the card network rules. And now, you're a criminal. I don't support criminals.

For the vast majority of shops, they can provide fair, honest, all-inclusive pricing with the convenience of paying by card, and this law nudges them in that direction.

chattychappy

AllieKat wrote: »

The number of people on here making the same mistakes small businesses make is shocking:

1. Accepting cash isn't free. Quit pretending it is, and it usually costs as much or more than accepting cards, as long as you have a reasonably fair processing contract.

When you've got over your shock, perhaps you would consider that it might be you making mistakes rather than "people on here" and "small businesses".

No pretending. It costs me more to take CCs when you I consider all factors. Obviously you think I can't be running my business properly.

Dealing with by favourite local travel agent, it certainly costs them more than when I pay by bank transfer for which I get better pricing (as mentioned on the other thread).

rtho782

Costco have a deal with Netpay that offers 2p+0.685% fees on Credit cards and 2p+0.385% on debit cards.

That is less than it would cost a small retailer to bank cash, so there are not really any excuses.

https://www.netpay.co.uk/costco/

barcopennight

I am trying to get a flat in London and noticed that on the invoice they will charge 2% for credit cards. This amount covers one month's rent, six month's deposit and agency fees so is quite sizeable. Is charging for credit cards illegal under these new laws? Note the estate agent is a company, it is not direct with the Landlord.

I have not mentioned it as I want the referencing and everything to go through first - I will have to pay this amount before moving in. I just wanted to clarify the rules before I do so.

On a side note what is happening with banning estate agent fees...grrrrr!!!

Thanks in advance!