Businesses can no longer charge extra if you pay by card

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Frijj

Frijj

Striker
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As of January 2018.

http://www.bbc.co.uk/news/business-40648641

I love this idea, I really do. Nothing pisses me off more than being told there's a card surcharge.

Nothing except, being told "There's a minimum £5 spend" which really grinds my gears.

And that's exactly what might happen. Places with a card fee will surely go back to minimum spends?

God, I can't believe I can look up the answer to any argument on the SMB from a device in my pocket that's also a GPS, telephone, camera, word processor, sends emails and sends music wirelessly to my headphones 15m away, but I can't buy a can of Coke on my card without paying extra.

Great.
 


Does your local shop currently add a percentage on for paying by card? Certainly none I know do but I've been in the odd one with a minimum spend. Bit ludicrous to gan in a corner shop and buy a can of coke on a card mind.

How will this affect those cashpoints that charge you to get your money out?

Saw they used Flybe as an example, absolutely shite company mind. The 3% or minimum £5 is a joke. The vast majority of their UK flights are no more than 40 quid anyway.
 
Prices will just go up to compensate. The consumer doesn't win at all. I can already see I'm going to make more money, nice parting gift by the EU :cool:
 
You get added protection when purchasing via a credit card. The card company charge the retailer more to cover the cost of this, and this cost is passed on to the customer.
 
Ashley In!! said:
You get added protection when purchasing via a credit card. The card company charge the retailer more to cover the cost of this, and this cost is passed on to the customer.
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What about debit?

Our local charges 1.50 per card transaction. Robbing bastard.
 
Ashley In!! said:
You get added protection when purchasing via a credit card. The card company charge the retailer more to cover the cost of this, and this cost is passed on to the customer.
Click to expand...

The retailer gets the benefit of business where he might not otherwise get it due to the customer not having cash, and the card company guarantees payment in return for a fee. Whether that fee should be passed to the customer or not is up for debate. I personally remember the first time I was charged a credit card fee years ago in IKEA and I complained like feck and never went back for years. I'm used to paying it now which I feel is wrong.
 
A few years ago I used to deal with card machines and the retailers had the option of either paying by transaction (hence the extra charge) or paying a set monthly fee. It wasn't worth the smaller retailers paying monthly as they would make a loss
 
I understand it for small businesses with a small turnover as card fees will be expensive for them.

I find it irritating with large companies like travel companies and HMRC that charge you a percentage of your spend. Surely they can absorb the card processing costs? I try and pay by credit card wherever possible as I've got a rewards card but sometimes it's not worth it when the fee charged will be more than the rewards gained.
 
Epping said:
Lots of small businesses get charged 15p or so a transaction... Expect your can of coke to go up in price...

Some do take the piss though
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If they want significant change, then the pricing/structure by providers need to change for small businesses.

Bigger local companies annoy me when they charge, surely you build it into your pricing. Not talking about cash in hand types, I mean legitimate firms. I wanted to pay £1500 on my card but refuse payment of fees.... 2-3%, so I've paid cash. No protection at all now from what I understand.
 
NeilP said:
The retailer gets the benefit of business where he might not otherwise get it due to the customer not having cash, and the card company guarantees payment in return for a fee. Whether that fee should be passed to the customer or not is up for debate. I personally remember the first time I was charged a credit card fee years ago in IKEA and I complained like feck and never went back for years. I'm used to paying it now which I feel is wrong.
Click to expand...

Who should pay the card fee for your card purchase?
 
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