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By (user no longer on site) OP
over a year ago
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Today marks the beginning of companies not being allowed to add a surcharge by paying with a credit or debit card charges.
In typical "dumbing down" fashion, TV news is stigmatising businesses who are instead raising their prices to cover it or adding a small service charge instead. But of course, they fail to mention that those same businesses are themselves always charged by their banks (among others) for every one of those card transactions.
But hey, why let the actual facts get in the way of adding some drama to the story.
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By (user no longer on site) OP
over a year ago
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"Facts should never get in the way of a good story!"
Just saw it again on BBC News with a specific food takeaway provider being singled out for special attention with no mention of their reason why they're now charging a 50p service charge. Maybe that's what you think you are entitled to be doing or is actually good journalism when your own salary is guaranteed to be covered by a compulsory licence fee.
#rantover |
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"Facts should never get in the way of a good story!
Just saw it again on BBC News with a specific food takeaway provider being singled out for special attention with no mention of their reason why they're now charging a 50p service charge. Maybe that's what you think you are entitled to be doing or is actually good journalism when your own salary is guaranteed to be covered by a compulsory licence fee.
#rantover"
however if you think about it there charging everyone the same amount as the people that used to pay by card.
surely thats about profit should they have not introduced a smaller service charge to every body to cover the costs of transations ? |
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By (user no longer on site) OP
over a year ago
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Yeah I don't disagree. It's kinda the same with companies who offer multiple delivery choices some of which are "free" (so who's paying for those?).
My point is more about shoddy reporting. The real story is that financial institutions always have and continue to charge retailers for card transactions but now those retailers can't pass it on as a separate charge and are now forced into hiding it somewhere else. Actually, this will probably have the effect of pushing up prices for everyone, and not just those who pay with a card. |
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By *ANDA2Couple
over a year ago
Henley Arden |
"Today marks the beginning of companies not being allowed to add a surcharge by paying with a credit or debit card charges.
In typical "dumbing down" fashion, TV news is stigmatising businesses who are instead raising their prices to cover it or adding a small service charge instead. But of course, they fail to mention that those same businesses are themselves always charged by their banks (among others) for every one of those card transactions.
The big problem was not the surcharge to cover costs but that some companies- particularly online airline booking sites- were charging £4.50 for what was in reality a 50p cost.
Yes the banks charge the retailer for card AND cash transactions. Banks charge typically 1% on cash payments for small businesses.
But you are ultimately correct. It’s p*** poor journalism. It seems the norm today.
"
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By (user no longer on site) OP
over a year ago
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I guess the actual charges will vary. Stripe, one of the large online payment services will charge the business around £3.20 for a £100 transaction and that's before your own bank's charges are added.
My local garage owner recently told me that his bank wanted to charge £3,000 to install contactless payment infrastructure.
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It's a complicated story though to be fair. It's EU rules that has stopped the card schemes from charging, not the banks. It means the scheme rules prohibits the fees being charged.
What wasn't reported was the same legislation meant that the fees the banks are allowed to charge were also cut, up to 80% in some countries.
The banks no longer own those schemes. I'm not calling for sympathy but under this rule change, the banks lose revenue too, from their acquiring businesses.
The challenge is that these issues are very complicated and that evidence from other countries, particularly Australia, is that no legislative change benefits who it was intended - and it's not even stipulated here who was supposed to benefit! It's like squeezing a balloon- the pressure just shifts to someone else. |
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If you're an online merchant, regardless of what the bank makes, you pay up to 5% to process the card. That's just fact.
Some companies allowed debit cards for free, because you pay 0 to process them.
No one running a website can go to the banks and avail of their low credit card handling fees, they pay their fee, then they add money on, then another company buys it at that rate, then add a bit on, then sell it to you.
If you had charges then the only solution is to introduce a price increase, or introduce a service charge. |
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By (user no longer on site)
over a year ago
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"Facts should never get in the way of a good story!
Just saw it again on BBC News with a specific food takeaway provider being singled out for special attention with no mention of their reason why they're now charging a 50p service charge. Maybe that's what you think you are entitled to be doing or is actually good journalism when your own salary is guaranteed to be covered by a compulsory licence fee.
#rantover"
They are also charging it for cash payments too, which is unfair as it doesn't cost them a fee. |
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