Charged for Cashback

unforeseen

However for cashback it is not a method of payment, it is a cash advance.

The retailer charging for a cash advance is no different to an Atm charging.

youngretired

A company can charge for using a card to make a purchase, but the rule is that it must apply to all cards where before some companies only charged for credit cards and not debit cards. Just Eat charges a 50p charge for all card payments.

Terry_Towelling

Zanderman wrote: »

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'

Interesting interpretation - I like your thinking, but the wording is still unequivocal.

The issue instead switches to the definition of 'payment'. It isn't spelled with a capital 'P' so that means it isn't a defined term and carries its normal English definition. In that respect, things could get really ridiculous with a retailer saying the CashBack element is just an exchange of value and the 'payment' for the CashBack is the 50p and, because they haven't surcharged for the 50p element they haven't broken the rules!

Unbelievable !:rotfl: (It's catching)

Terry_Towelling

youngretired wrote: »

A company can charge for using a card to make a purchase, but the rule is that it must apply to all cards where before some companies only charged for credit cards and not debit cards. Just Eat charges a 50p charge for all card payments.

Is this right?

Zanderman

Terry_Towelling wrote: »

Interesting interpretation - I like your thinking, but the wording is still unequivocal.

The issue instead switches to the definition of 'payment'. It isn't spelled with a capital 'P' so that means it isn't a defined term and carries its normal English definition. In that respect, things could get really ridiculous with a retailer saying the CashBack element is just an exchange of value and the 'payment' for the CashBack is the 50p and, because they haven't surcharged for the 50p element they haven't broken the rules!

It doesn't matter if the wording is unequivocal if it's the wrong wording.

As Unforeseen says above Cashback isn't a payment - it's withdrawing cash. If it's not a payment the words you're quoting are meaningless in the context.

Migster

Terry_Towelling wrote: »

Is this right?

No. The charge must apply to all payment methods, which is exactly what Just Eat does i.e. even if you pay cash, you still have to pay the 50p.

Migster

I have some sympathy with the retailer in this scenario, as card interchange now works on a percentage basis – 0.2% for debit cards and 0.3% for credit cards. If the retailer’s card fees are also charged on a percentage basis, they will be charged extra when they provide cashback, but make no more profit as a result. As such it would not be unreasonable to levy a separate fee, assuming it is legal to do so.

I tend to this it probably is OK, as they are charging for the service of providing cashback, rather than for the payment method.

Terry_Towelling

Zanderman wrote: »

It doesn't matter if the wording is unequivocal if it's the wrong wording.

As Unforeseen says above Cashback isn't a payment - it's withdrawing cash. If it's not a payment the words you're quoting are meaningless in the context.

Thanks for that @Zanderman - and you will have seen that's exactly what I said in the post you quoted.