)% interest a con



  • I thought the legislation made it illegal to add money ON for other payment types, so surely DEDUCTING money from the list price is perfectly fine?
  • I thought the legislation made it illegal to add money ON for other payment types, so surely DEDUCTING money from the list price is perfectly fine?

    They have covered that loophole with section 13.2:

    "Whilst encouraging customers to pay with a certain payment method is not prohibited,
    it is important that any discounts for use of a particular means of payment do not
    create a situation in which those making payments by other means are effectively
    faced with a surcharge that does not comply with the Regulations."

    So if a discount is offered for cash then it is effectively a surcharge for all other payment methods as you have to pay more to use them.

    Unfortunetly even though these regulations have been around for 10 years lots of small businesses seem to think it's fine to openly advertise breaking the law.

  • Manxman_in_exile
    Manxman_in_exile Posts: 8,380 Forumite
    First Anniversary Name Dropper First Post
    edited 28 January 2022 at 8:41PM
    I suspect zagfles is closest to the truth. It's not 0% if you give your customers a discount for not using it. If you want to pay cash and get a discount for doing so, there are a lot of small companies who will be more than happy to deal with you. Many of them will even provide a VAT receipt! Companies still pay the finance company or card processing company various fees, and there's reduced risk with accepting cash payment as the customer can't later issue a chargeback or section 75 etc. Plus the retailer gets paid right away, whereas with finance payments the money is usually only released a set period of time after the customer has had the product delivered.
    I'd never deal with a company that specifically asked for cash payment, but my business and many others will give a discount for paying with cash. Although probably not as much as 20% unless they're collecting the product themselves.

    Your business and others that do that are breaking the law as the Consumer Rights (Payment Surcharges) Regulations 2012 make it illegal to charge less for cash and charge more for other payment types.

    I must admit when I initially read the OP my first reaction was that you can't offer a discount for cash can you?

    EDIT:  Or is it that if the customer offers to pay in cash for a discount, that the retailer can't accept that offer?   Hmmm...
  • anotheruser
    anotheruser Posts: 3,485 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
    One of the brexit benefits is that the cost of shipping has increased significantly.
    Not a direct result of Brexit.
    All countries have seen large increases.
  • JetpackVelociraptor
    JetpackVelociraptor Posts: 182 Forumite
    Name Dropper First Anniversary First Post
    edited 29 January 2022 at 1:49PM
    I guess I should have said, in my store the discount is for immediate payment without a deposit or finance, not specifically for cash. Customers paying by debit or credit card get the exact same discount, so no laws are broken :) Plenty of customers will just ask for the "best price for cash" and may mean all kinds of things by it, from offering to pay right away (which is fine), to offering to pay with literal cash (also fine), to trying to avoid VAT (not so fine).
    I can't speak for other companies and how they chose to deal with the change in law, but when they implemented the surcharge we just started including the cost of card processing into all of our discount prices.
    Although I'm not sure, come to think of it, whether that would apply if it's the customer making an offer?  Unless you made an offer saying you'd pay cash and then pulled out a card and the retailer said "no, that's not cash, you'll have to pay more". But in my experience customers do that regularly anyway because some people regard "cash" as "any payment method that isn't finance".
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