MSE News: Credit and debit card charges banned from Saturday - what you need to know
Comments
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I believe that it's valid for the council to charge £1 for all forms of payment they accept and Ringgo to charge £1.20 for all forms of payment they accept, as neither is actually surcharging to differentiate between payment methods.A conversation with local council in respect of Ringo parking payments elicited this reply:
"...Council does not pass on the cost of taking payment by debit/credit for parking to customers. The only potential charge in addition to the fee for parking is made by Ringo where customers elect to use their services. Again the cost of taking the payment for parking if using a debit/credit card is met by the Council."
The non optional fee is a "Convenience Fee" for paying by credit card
£1 parking charge costs £1.20 if using a credit card.
Would this qualify because a third party is involved in the payment for the service?
JohnM
The way I see it, Ringgo 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 Ringgo to charge the same as the council for it.0 -
I think you're looking through the wrong telescopeI wouldn't be so sure. It seems to me that Payment Services Directive 2 (PSD2) is a lot about breaking open closed networks and creating "open access". The bit we are talking about (no surcharges) is just one effect and maybe we are looking at PSD2 through the wrong end of the telescope if the overall effect will be to encourage consumers to expect to use any payment method they choose and thus to put pressure on merchants and upline payment services partners to make sure they offer what consumers want?
You may well be right with your speculation about the long-term future of payments but in the context of this thread about what specific changes apply to card payments from Saturday, it's all about eliminating surcharges, even though PSD2 does indeed bring other things into play elsewhere, such as open banking. Whether or not this will ultimately lead to significant changes to the payment landscape is something that'll shake out over a somewhat longer period than this calendar year though....0 -
An interesting point was raised on a holiday chat website.
Can UK based package holiday tour operators still apply a % fee for goods or sevices purchased outwith the EU ?
For example, if you were to book an excursion from a Thomas Cook local representative in Florida, would TC be legally entitled to apply a CC surcharge ?
Or on an onboard cabin account on a cruise operating outwith EU territorial waters ?0 -
NoodleDoodleMan wrote: »Can UK based package holiday tour operators still apply a % fee for goods or sevices purchased outwith the EU ?
For example, if you were to book an excursion from a Thomas Cook local representative in Florida, would TC be legally entitled to apply a CC surcharge ?
Or on an onboard cabin account on a cruise operating outwith EU territorial waters ?
From the article on the main MSE site linked in the first post on this thread:the ban on card surcharges applies to any transaction when the bank(s) of the consumer and the retailer are based within the EU, or Iceland, Liechtenstein or Norway.
So it depends on that. I would guess that the Thomas Cook rep in Florida will be charging through a US bank, and the cruise (assuming it's an EU based cruise line) will be charging through an EU bank, but it will obviously vary from case to case.0 -
Thanks Mr.Duck - I doubt such a retail purchase would transact through a UK or EU bank.
The moral of this story is - purchase as much of your holiday package or cruise deal as possible up front in the UK.0 -
PayPal is still charging to use a credit card as if 9am this morning...are they exempt from the legislation (I.e. sending money isn’t covered but retail transactions are?).Sending or receiving money between friends and family within the UK (in GBP) :Free when funded by the sender’s PayPal balance, bank account or debit card. If you use a credit card to send money, a fee of 3.4% + 20p applies.
https://www.paypal.com/uk/webapps/mpp/paypal-fees
Checked with a wee test transaction...0 -
This raises an interesting issue - if PayPal aren't allowed to charge extra for credit card payments in this way then this would effectively become a free way of withdrawing cash from a credit card account! Is this a loophole or is their surcharge exempt from the new regulations?PayPal is still charging to use a credit card as if 9am this morning...are they exempt from the legislation (I.e. sending money isn’t covered but retail transactions are?).Sending or receiving money between friends and family within the UK (in GBP) :Free when funded by the sender’s PayPal balance, bank account or debit card. If you use a credit card to send money, a fee of 3.4% + 20p applies.
https://www.paypal.com/uk/webapps/mpp/paypal-fees
Checked with a wee test transaction...0 -
Just made a booking with Ryanair and am happy, but mildly surprised, to advise that they appear to be fully compliant with the new rules, although I'm not under any illusion that they won't have raised their fares (and the plethora of ancillary add-on costs) to compensate, albeit they haven't done so overnight....0
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Well it'll make no difference to me. In almost 40 years of using cards, I've never been asked to pay any sort of fee or surcharge.Stompa0
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Well it'll make no difference to me. In almost 40 years of using cards, I've never been asked to pay any sort of fee or surcharge.
Well lucky you! The travel sector was probably the worst with airlines and travel agents charging both CC surcharges.
I found TAs would usually drop the fee if you asked them to. People used to get around BA's CC surcharge by changing the country location when booking online.
I've paid CC surcharges in the past to get S75 protection. The surcharge used to be offset by a reasonable amount of cashback.0
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