Charged for Cashback

zaax

Last night I was charged 50p for cashback with a purchase. I thought all card usage charges for the consumer had made illegal.

eskbanker

Surcharges applicable to specific payment methods were outlawed earlier this year, but I wouldn't have thought that this prevented a merchant from charging for cashback, in much the same way that some ATMs charge for withdrawals....

EarthBoy

They have, but the charge wasn't for using your card, it was for the cashback and I don't know of any regulations forbidding charges for cashback. If you'd used your card and not requested any cashback there shouldn't have been a charge.

Shakin_Steve

New one on me. Never heard of being charged for cashback.

~Beanie~

Lucky it was only 50p, they charge £1 in my local shop although that is cheaper than the cash machine inside the same shop which charges £1.75.

Wheres_My_Cashback

zaax wrote: »

Last night I was charged 50p for cashback with a purchase. I thought all card usage charges for the consumer had made illegal.

I'm sure you were advised prior to receiving the cashback though

Terry_Towelling

Are we all just guessing that this practice is probably OK? I'd be inclined to complain to your card company and see what their view is of this. If it turns out to be illegal, they will probably give you a credit. Enforcing the law in this area is down to Trading Standards and I know it's only 50p but sometimes you have to make a stand.

I can understand the charge for using a 'private' ATM because you are being charged to use the ATM, not for using your card. Being charged for CashBack with a purchase is a bit rich (if on a debit card) because the fee charged to the retailer for a debit card transaction is the same regardless of the transaction amount (whether or not it includes CashBack) and you are doing them a favour by taking 'risky' cash out of their tills and also potentially reducing their cash-handling fees at the bank.

Complain - I would - but make sure the cost of the phone call to your bank/Trading Standards isn't more than 50p!

Wheres_My_Cashback

Terry_Towelling wrote: »

Are we all just guessing that this practice is probably OK? I'd be inclined to complain to your card company and see what their view is of this. If it turns out to be illegal, they will probably give you a credit. Enforcing the law in this area is down to Trading Standards and I know it's only 50p but sometimes you have to make a stand.

I can understand the charge for using a 'private' ATM because you are being charged to use the ATM, not for using your card. Being charged for CashBack with a purchase is a bit rich (if on a debit card) because the fee charged to the retailer for a debit card transaction is the same regardless of the transaction amount (whether or not it includes CashBack) and you are doing them a favour by taking 'risky' cash out of their tills and also potentially reducing their cash-handling fees at the bank.

Complain - I would - but make sure the cost of the phone call to your bank/Trading Standards isn't more than 50p!

It's not illegal ! Talk about sending someone on a wild goose chase for 50p :rotfl::rotfl:

eskbanker

Terry_Towelling wrote: »

Are we all just guessing that this practice is probably OK?

I can't speak for others but my starting position was essentially that I can't put my finger on any reason why it wouldn't be OK and therefore there is no basis on which to complain, as the burden of proof surely needs to be on the complainant in this scenario, especially if approaching Trading Standards rather than just moaning to the retailer. If someone can point to some regulations that prohibit this practice, then go ahead!

Terry_Towelling wrote: »

Being charged for CashBack with a purchase is a bit rich (if on a debit card) because the fee charged to the retailer for a debit card transaction is the same regardless of the transaction amount (whether or not it includes CashBack)

I was under the impression that this used to be the case but that the industry was shifting from fixed-fee debit card transactions to percentage-based within merchant agreements? However, either way round, the retailer making more profit doesn't in itself make the charge illegal or even unfair....

Terry_Towelling

Wheres_My_Cashback wrote: »

It's not illegal ! Talk about sending someone on a wild goose chase for 50p :rotfl::rotfl:

Unbelievable!!:rotfl:




@Eskbanker, all I could find about the legalities of surcharging was the following:-

6A.—(1) A payee must not charge a payer any fee in respect of payment by means of—
(a)a payment instrument which—
(i)is a card-based payment instrument as defined in Article 2(20) of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions(2); and
(ii)is not a commercial card as defined in Article 2(6) of that Regulation

That seems pretty unequivocal to me. The retailer might claim it to be a charge for using the CashBack service rather than any attempt to recover processing costs but the words don't discriminate - a retailer must not charge a fee for a non-business card-based transaction.

Zanderman

Terry_Towelling wrote: »

That seems pretty unequivocal to me. The retailer might claim it to be a charge for using the CashBack service rather than any attempt to recover processing costs but the words don't discriminate - a retailer must not charge a fee for a non-business card-based transaction.

Not quite unequivocal as far as I can see - in that it refers to payments, not to cashback, which may not be classified as a 'payment'