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Contactless costs
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FluffyVal
Posts: 13 Forumite

I believe the costs to the retailer of a customer using a contactless card is between 1.4% and 1.6%.
I was just thinking how much the use of contactless had increased since Covid.
This was a bank windfall.
I was just thinking how much the use of contactless had increased since Covid.
This was a bank windfall.
Shouldn’t the banks reduce the amount they charge the retailer. This would be fairer to the retailer and could (yes could) trickle down to the consumer.
It only seems a small amount but the increased usage justifies the change
Always carry a sturdy hairgrip!
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Comments
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Cost is the same for contactless & Chip & Pin to banks. So no windfall to them.Life in the slow lane0
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There may be a difference in the cost to retailers. I recall having a conversation a couple of years ago with a lady at the till in a National Trust shop and she said it cost them more for a C&P transaction than a contactless. Things may have changed since then, it was a while ago.ETA it can cost small retailers with much lower transaction numbers way more than the figures quoted above. I ran my own business until a few years ago; the galling thing is being charged X% on the VAT in addition to the net cost. In the end I encouraged my customers to pay into my bank account and only took card payments by phone from new customers to ensure I was paid.Make £2025 in 2025
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Don't forget there are plenty of costs for using cash.
Some banks charge business for depositing cash, plus security, travel and time costs to get to the bank and count the cash1 -
penners324 said:Don't forget there are plenty of costs for using cash.
Some banks charge business for depositing cash, plus security, travel and time costs to get to the bank and count the cash
So much per £100 banked
And if you wanted change for your tills you then charged so much per £100 for that as well
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FluffyVal said:I believe the costs to the retailer of a customer using a contactless card is between 1.4% and 1.6%.
I was just thinking how much the use of contactless had increased since Covid.
This was a bank windfall.Shouldn’t the banks reduce the amount they charge the retailer. This would be fairer to the retailer and could (yes could) trickle down to the consumer.It only seems a small amount but the increased usage justifies the change
Having cash adds a lot of cost too... employee time cashing up, dealing with change, banking, insurance for having the cash on site, banking fees for depositing cash or getting change, dealing with the till being under/over. Manual accounting entries -v- system integration with card payments.0 -
FluffyVal said:I believe the costs to the retailer of a customer using a contactless card is between 1.4% and 1.6%.
I was just thinking how much the use of contactless had increased since Covid.FluffyVal said:This was a bank windfall.FluffyVal said:Shouldn’t the banks reduce the amount they charge the retailer. This would be fairer to the retailer and could (yes could) trickle down to the consumer.FluffyVal said:It only seems a small amount but the increased usage justifies the change
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