MSE News: Credit and debit card charges banned from Saturday - what you need to know

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  • Nick_C
    Nick_C Posts: 7,459 Forumite
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    Presumably, the only way to pay using the app is by debit or credit card? They are entitled to charge an admin fee, provided that fee is the same regardless of the method of payment.

    If you could pay by PayPal using the app and there was no fee then they would be breaking the law. But if they are not discriminating, they are not charging more for some payment methods than others, then they are complying with the law.
  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    bailey70 wrote: »
    I see what you're saying... but if it's a surcharge that ONLY applies if you pay by debit or credit card, no matter what the method, surely this would still be a breach of the law. It's not as if they're charging me to deliver the car park to me, I'm still having to go there to use it.
    I see this as the same issue as the Ringgo one discussed at posts #39 and #42 above, i.e. MiPermit is effectively acting as an agent in the same way that, say, a travel agent might charge a different price for booking a hotel from what you'd pay by going direct, so IMHO the fact that it's ultimately the same parking space doesn't oblige MiPermit to charge the same as the council for it. The fact that they only allow payment by card is essentially incidental as far as compliance with the new regulations is concerned....
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    I suppose there is a chance for a loophole here.

    Let's say I'm a travel agent. "Cash Flights 'r us". I sell flights for cash or debit card only. On my advertising, I say "We don't take CCs in order to give you he best prices." I then have a Visa/Mastercard logo and the comment "Want to pay by CC? No problem. Our partner business can process your order - just book through them at a modest 2% surcharge."

    Provided the businesses are separate legal identities, this should be legal. In fact one business could even process the orders as agent for the other, provided it was clear to the consumer at the point of sale.
  • Nick_C
    Nick_C Posts: 7,459 Forumite
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    It could work, but wouldn't you lose S75 protection if you booked that way?

    Is not so long ago that MC and VISA didn't allow surcharges. Businesses quite happily took them because CCs generate extra business.

    I'm sure the new system will work just fine
  • eDicky
    eDicky Posts: 6,575 Forumite
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    chattychappy wrote: »
    "Want to pay by CC? No problem. Our partner business can process your order - just book through them at a modest 2% surcharge."
    I guess you couldn't mention a surcharge, but "book through them at excellent prices, no more than 2% higher than ours".

    Consumers' choice, why should they have to subsidise the card perks received by others.
    Evolution, not revolution
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    edited 6 February 2018 at 11:07AM
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    Nick_C wrote: »
    It could work, but wouldn't you lose S75 protection if you booked that way?

    Well travel agency is complicated anyway. But yes, it would hardly help if one is the agent of the other. Not really a problem for the seller though, only the cardholder.
    Nick_C wrote: »
    Is not so long ago that MC and VISA didn't allow surcharges. Businesses quite happily took them because CCs generate extra business.

    Not in the case of my B2B. Barclays Merchant Services had such a condition in their T+Cs, but it was unenforceable except to the extent the charge exceeded the cost. (Which later became law anyway.) I remember getting a letter from them saying I was in breach of their T+Cs and I pointed them to the law. Their "legal team" said they wouldn't take it any further. Their rep (who I was always on good terms with) said she hadn't even realised the legal position. At the time, my fee with them was 4% on the amount collected (so overall the hit was bigger because of the VAT) and my margins were 5% on some products.
    eDicky wrote: »
    I guess you couldn't mention a surcharge, but "book through them at excellent prices, no more than 2% higher than ours".

    Actually I don't see a problem in being more direct. "If you wish to buy with a CC, then we've teamed up with loopholesRus who will charge the same as us plus a 2% surcharge.
  • AllieKat
    AllieKat Posts: 109 Forumite
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    chattychappy wrote: »
    Actually I don't see a problem in being more direct. "If you wish to buy with a CC, then we've teamed up with loopholesRus who will charge the same as us plus a 2% surcharge.

    Preventing behaviour like this is why e-money services like PayPal are included in the surcharge ban in the UK (though not in the EU directive).

    Obviously, there will always be a few who will do anything they can to creatively break the intent, but not the letter, of the law. Most businesses will just get on with things and consumers will win.
  • hamstring
    hamstring Posts: 2 Newbie
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    If the government has banned all Credit Card Surcharges from 13th January 21018, why are the DVLA still charging £2:50 to pay for my Tax renewal???
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    AllieKat wrote: »
    Most businesses will just get on with things and consumers will win.

    As a consumer, I feel I've lost out.
  • AllieKat
    AllieKat Posts: 109 Forumite
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    chattychappy wrote: »
    As a consumer, I feel I've lost out.

    Really? Because I feel like I've won. Even one shop I was sure would be non-compliant (Typo - it's a big Australian chain, where card surcharges are common and when I emailed them about it when they first opened basically told me to get lost, so I still won't be shopping there) took down their surcharges sign (they only surcharged Amex and Diner's Club, but still).

    Oh, and when I booked my easyJet flight I'm taking in the morning? No surcharges there either, using my Amex.

    For a site called Money *SAVING* Expert, there sure are a lot of people on here willing to defend rip-off fees.
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