Credit card instore Fees scrapped from 13/1/18

59
Found 6th Jan
Do you find it annoying when your local shop charges a fee for paying by credit card. Some charge a fixed fee of 30-50p if spending less than £5 or £10.

Well from next Saturday they are no longer allowed to do this. I'm not sure if they'll try to raise Minimum spend to get around this. However the charge to them is now something so low like 0.01% so hopefully not. If they don't comply it's up to your local trading standards to investigate.

Companies will be banned from charging ANY fees for credit or debit card payments from early next year.

From MSE

New rules which will come into effect on 13 January 2018 will mean you cannot be penalised for choosing to pay by card, either online or in-store.

Under the current rules, which came into force in 2013, companies should only charge you what it costs them to process a debit or credit card payment - they shouldn't make a profit on these surcharges.

But consumers can still face hefty charges, with fees typically around 2% and on some smaller transactions accounting for as much as 20% of the bill.

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Been waiting for this. Just Eat have been ripping me off.

eset1234555 m ago

they will be paying nothing like 2.75% in fees, where are you getting …they will be paying nothing like 2.75% in fees, where are you getting these mythical rates from?


I have a card machine myself. (I'm a cabbie). I pay upto 2.75% per transaction. (I have both iZettle and Paypal).

The only ones paying the 0.01% fees mentioned earlier are the massive superstores, the likes of Tesco etc. because they take so much monies, so they get a very favourble rate.

The small independant corner store, sole trader, like myself, a cabbie, would be paying either upto 2.75% per transaction or a monthly fee for the machnes plus a transaction fee.

iZettle are 1.75% (PAYG) (only recently gone down from 2.75%) or £20pm PLUS the initial cost of any reader of £75 (or £35 on offer at the moment).

WorldPay charge 2.75% PLUS 20p on their PAYG system. Their monthly subscruibtion tarrif is £19.95 PLUS 2.75% per transaction CC and 0.75% debit cards..

PayPal Here is 2.75% PLUS the intial cost of £75 for the reader.

SumUp charge 1.69% per transaction or 2.95% for virtual/manual transaction PLUS the inital cost of the reader

Square are 1.75% or 2.5% for keyed in transaction PLUS card reader cost.

All of the above are commonly used by SMALL and SOLE traders like myself

There are your "nothing like 2.75% and mythical" rates!
Edited by: "artnada" 7th Jan
59 Comments

About time

Supermod

Thanks for the info - i've moved this over to Misc for discussion.

Does this go for Debit Card as well?

calvin6246 m ago

Does this go for Debit Card as well?


Yes.

Read it here.

So will places like Ryanair no longer be charging customers a fee for using Amex?
Edited by: "Bezzina" 6th Jan

Thanks man. Corner store near me does this and it drives me crazy.

crush the smaller shops but let the bigger guys get away with it, online companies, insurance companies and airlines will still get away with rip off fees.

Bezzina42 m ago

So will places like Ryanair no longer be charging customers a fee for …So will places like Ryanair no longer be charging customers a fee for using Amex?


They will find something else that you have to buy to fly with them.

Been waiting for this. Just Eat have been ripping me off.

calvin6241 h, 46 m ago

Thanks man. Corner store near me does this and it drives me crazy.


The guy on Radio 4 moneybox programme on BBC news this morning said smaller retailers would probably still continue doing this but local trading standards wouldn't intervene (too much hassle)
Edited by: "u664541" 6th Jan

shabbird50 m ago

Been waiting for this. Just Eat have been ripping me off.


Will Just Eat be stopped from charging fees or just smaller shops?

davewave1 h, 54 m ago

crush the smaller shops but let the bigger guys get away with it, online …crush the smaller shops but let the bigger guys get away with it, online companies, insurance companies and airlines will still get away with rip off fees.


Brilliant point, biggest businesses will find other means of charging to plug profit targets increasing year on year. It is the smaller businesses that are less able to do so.

davewave32 m ago

Will Just Eat be stopped from charging fees or just smaller shops?


When this came out they mentioned the takeaway specifically. 50p rip off card charge.
Click me They will find a way to pass the charge to customers in some way.

If you ever read visa or MasterCard terms and conditions you would know this always been forbidden

"However the charge to them is now something so low like 0.01%" quoted from above:

That type of rate is for big companies e.g Tesco/Sains etc., who incedentaly, hide the charges within your shoping and have done so for years! The corner shop/sole trader pays more, typically between 2.5% and 3.75%.

The only people this will affect, will be small independant shops and sole traders. It won't affect big companies in any way.

All that will hapen is, they will simply put their prices up to cover card costs, and EVERYONE will pay more, not just card users.

But then, most of Joe Public is blinkered when it comes to matters like this!

artnada33 m ago

"However the charge to them is now something so low like 0.01%" quoted …"However the charge to them is now something so low like 0.01%" quoted from above: That type of rate is for big companies e.g Tesco/Sains etc., who incedentaly, hide the charges within your shoping and have done so for years! The corner shop/sole trader pays more, typically between 2.5% and 3.75%.The only people this will affect, will be small independant shops and sole traders. It won't affect big companies in any way.All that will hapen is, they will simply put their prices up to cover card costs, and EVERYONE will pay more, not just card users.But then, most of Joe Public is blinkered when it comes to matters like this!


Aren't we all Joe Public, I think most people are suspicious of charges being passed on sneakily.

artnada3 h, 45 m ago

"However the charge to them is now something so low like 0.01%" quoted …"However the charge to them is now something so low like 0.01%" quoted from above: That type of rate is for big companies e.g Tesco/Sains etc., who incedentaly, hide the charges within your shoping and have done so for years! The corner shop/sole trader pays more, typically between 2.5% and 3.75%.The only people this will affect, will be small independant shops and sole traders. It won't affect big companies in any way.All that will hapen is, they will simply put their prices up to cover card costs, and EVERYONE will pay more, not just card users.But then, most of Joe Public is blinkered when it comes to matters like this!


Your own money is king, cost you nothing for credit, any business between you and a retailer cost a shed load of money. They become the king when they give uuiu credit. Spend cash as much as possible. This means going to ATM frequently.

splender19 m ago

Your own money is king, cost you nothing for credit, any business between …Your own money is king, cost you nothing for credit, any business between you and a retailer cost a shed load of money. They become the king when they give uuiu credit. Spend cash as much as possible. This means going to ATM frequently.


I barely pay for anything in cash anymore, always put it on a Credit card. Doesn't really make any sense to use cash (Unless you're not elegible for a CC).
Edited by: "teh.arn" 6th Jan

cash may be gone in a few years, more money is spent using cards than using cash.

Get a wallet case for your phone, stick a contactless card into the case, to pay just tap your phone over the thingy. the contact signal will work through the top of the case.
stick a folded twenty quid note hidden behind the phone, this is for emergencies.

if you need two cards in your wallet case, but both are contacless, its easy to make one non contactless by cutting the edge of the card, to break the signal wires which go round the edge of the card.
Edited by: "lumsdot" 6th Jan

Hope this includes Airlines and holiday companies who impose extra charges.

splender2 h, 25 m ago

Your own money is king, cost you nothing for credit, any business between …Your own money is king, cost you nothing for credit, any business between you and a retailer cost a shed load of money. They become the king when they give uuiu credit. Spend cash as much as possible. This means going to ATM frequently.


And hopefully not the one in the corner shop where you have to pay £1.99 for the privilege.

teh.arn12 h, 38 m ago

I barely pay for anything in cash anymore, always put it on a Credit card. …I barely pay for anything in cash anymore, always put it on a Credit card. Doesn't really make any sense to use cash (Unless you're not elegible for a CC).


It makes a lot of sense for many people to use cash rather than a card as you get a better sense of your actual spending. Far too easy for some people to accrue large monthly bills on relatively small multiple purchases eg. Daily sandwich meal and a Starbucks coffee could rack up £200+ a month.

I just feel that I spend far less when I restrict daily routine purchases in cash. I only use cards for larger purchases because of the consumer protection they offer.

Spent £38 at my local takeaway charged
Me 50p

Ka11ran2 h, 22 m ago

Spent £38 at my local takeaway chargedMe 50p


That transaction would have cost them £1.05*. Which means they lost 55p on the sale price of the goods you purchased.

*based on 2.75% fees

By the way, when it all changes, be prepared to pay 50 extra on your takeaway everytime anyway, wether cash or card

teh.arn16 h, 24 m ago

I barely pay for anything in cash anymore, always put it on a Credit card. …I barely pay for anything in cash anymore, always put it on a Credit card. Doesn't really make any sense to use cash (Unless you're not elegible for a CC).


...and it can pay you to do so. I get £20 pcm back from my Amazon CC. Never paid a penny interest either.

I wonder if the phrase "any discount for cash" will make a comeback when all the prices rise.

Original Poster

lumsdot17 h, 20 m ago

cash may be gone in a few years, more money is spent using cards than …cash may be gone in a few years, more money is spent using cards than using cash.Get a wallet case for your phone, stick a contactless card into the case, to pay just tap your phone over the thingy. the contact signal will work through the top of the case.stick a folded twenty quid note hidden behind the phone, this is for emergencies.if you need two cards in your wallet case, but both are contacless, its easy to make one non contactless by cutting the edge of the card, to break the signal wires which go round the edge of the card.


Cash will be there for a while yet especially in schools where it's a pound for this and a pound for that. All adhoc PTA things. Would be too awkward to set up transfers for this. I personally don't use cards if under £7-8. However first thing in the morning many stores are self service machines and card only so it's unavoidable here.

IWOOTN1 h, 28 m ago

Cash will be there for a while yet especially in schools where it's a …Cash will be there for a while yet especially in schools where it's a pound for this and a pound for that. All adhoc PTA things. Would be too awkward to set up transfers for this. I personally don't use cards if under £7-8. However first thing in the morning many stores are self service machines and card only so it's unavoidable here.



However the charge to them is now something so low like 0.01%

Where did you get that ridiculous figure from?
I was paying 50p for a debit card transaction, and 2.75% for a credit card.
I sold a lot of 99p items where the profit was around 23p.

I didn't charge for card transactions, but did have a £6 min spend on them.

All this means is that shops will introduce a minimum spend or increase the costs of things to cover it, which instead of saving consumers money will cost them. For example, a takeaway might put 50p onto everything in case someone buys one item, but if you buy 5 you will be paying £2.50 more, whereas previously you would have paid the 50p charge instead, or nothing if you were paying cash!
Edited by: "julieallen" 7th Jan

chocci7 h, 2 m ago

It makes a lot of sense for many people to use cash rather than a card as …It makes a lot of sense for many people to use cash rather than a card as you get a better sense of your actual spending. Far too easy for some people to accrue large monthly bills on relatively small multiple purchases eg. Daily sandwich meal and a Starbucks coffee could rack up £200+ a month. I just feel that I spend far less when I restrict daily routine purchases in cash. I only use cards for larger purchases because of the consumer protection they offer.


With all the apps that are available to monitor your spend (Plus restrictions you can add) it's not really a valid argument. Unless that person doesn't have a smart phone.

I use Amex for everthing and Capital One for anywhere that doesn't accept Amex. They give cashback on everything spent, offers for a wide range of shops and the protections they give are incredible.

I've never had an issue with Amex and they've been incredible for any issues I've ever had.
I've got it linked to my Paypal account for extra protections for when Ebay and Paypal fail me.

fivegoldstars3 h, 18 m ago

...and it can pay you to do so. I get £20 pcm back from my Amazon CC. …...and it can pay you to do so. I get £20 pcm back from my Amazon CC. Never paid a penny interest either.


Same here, but with Amex & Capital One.
Never paid any interest, pay it off in full every month.
Get some pretty decent offers from Amex and First Direct, the cashback is just an added bonus.

IWOOTN3 h, 34 m ago

Cash will be there for a while yet especially in schools where it's a …Cash will be there for a while yet especially in schools where it's a pound for this and a pound for that. All adhoc PTA things. Would be too awkward to set up transfers for this. I personally don't use cards if under £7-8. However first thing in the morning many stores are self service machines and card only so it's unavoidable here.


My kid's school went cashless this year - everything has to be paid through an online platform, Parentpay.

I think most people realised that there is a cost in getting cashback. The principle is that you (generalised term) pay yourself cashback collectively through higher prices. However in spite of this plain truth the overrriding factor is an immediate personal gain using plastic cards.

1. If a sale transactions says on pricing label: £100 for cash; or £102.75 for credit card (you get 50p or £1 cashback) --> a lot of people will choose to pay in cash.

2. However, since the pricing is just one price, then when the goods £100 worth is priced as £102.75 for cash or credit card with cashback, then an individual will make a personal gain choice for cashback

Unless people en masse start to switch back to cash (+debit card) then the inevitable happens as the overall living cost of the whole society would have gone up by 2.75% or whatever the oligopolies would like to charge as the rate then.

Personally I think cashback is an short-term personal gain benefit but is a long-term economic burden so I spend as much as possible in cash and forsake the cashback. Post-2019 and in transitional arrangement after having left EU:

1. our economy is less able to sustain an army of bureaucrat in financial industry as they make nothing for export to trade; service growth in this sector makes nothing for Britain that foreigners is able to pay for,

2. we are less able to compete in world markets where the British workers live with 2.75% extra burden (minus a bit of cashback) on the price of our labour in our export of goods and services, (Germany, China, Japan ..spend cash)

3. there will be less money to spend from 2019 after leaving EU, one may as well as get used to counting cash since academic analyses confirm this helps spending less,

4. in any case once the Mastercard and Visa have dominance they would gradually phase off the percentage rate of cashback to zero so your long-term outlook is nothing and then you have another bureacractic financial middleman millstone 2.75% round your neck.

davewave6th Jan

crush the smaller shops but let the bigger guys get away with it, online …crush the smaller shops but let the bigger guys get away with it, online companies, insurance companies and airlines will still get away with rip off fees.


if a shops profit margin can't cover the 0.4% or less that it costs to process a card transaction then they really need to rethink their business model

eset123453 m ago

if a shops profit margin can't cover the 0.4% or less that it costs to …if a shops profit margin can't cover the 0.4% or less that it costs to process a card transaction then they really need to rethink their business model


Nice attitude.

artnada6th Jan

"However the charge to them is now something so low like 0.01%" quoted …"However the charge to them is now something so low like 0.01%" quoted from above: That type of rate is for big companies e.g Tesco/Sains etc., who incedentaly, hide the charges within your shoping and have done so for years! The corner shop/sole trader pays more, typically between 2.5% and 3.75%.The only people this will affect, will be small independant shops and sole traders. It won't affect big companies in any way.All that will hapen is, they will simply put their prices up to cover card costs, and EVERYONE will pay more, not just card users.But then, most of Joe Public is blinkered when it comes to matters like this!


any business can get 0.39 for debit and about 0.69 for credit cards from multiple different suppliers,

if any shop is paying 3.75% i'll eat my hat

netpay.co.uk/cos…co/
netpay.co.uk/boo…er/

artnada7 h, 41 m ago

That transaction would have cost them £1.05*. Which means they lost 55p on …That transaction would have cost them £1.05*. Which means they lost 55p on the sale price of the goods you purchased. *based on 2.75% feesBy the way, when it all changes, be prepared to pay 50 extra on your takeaway everytime anyway, wether cash or card


they will be paying nothing like 2.75% in fees, where are you getting these mythical rates from?

davewave3 m ago

Nice attitude.


you're taking 4p for a £10 transaction, what could they possibly sell at that price that doesn't cover that kind of margin?

even petrol that has one of the lowest margins will be much more than that off a £10 transaction

eset1234555 m ago

they will be paying nothing like 2.75% in fees, where are you getting …they will be paying nothing like 2.75% in fees, where are you getting these mythical rates from?


I have a card machine myself. (I'm a cabbie). I pay upto 2.75% per transaction. (I have both iZettle and Paypal).

The only ones paying the 0.01% fees mentioned earlier are the massive superstores, the likes of Tesco etc. because they take so much monies, so they get a very favourble rate.

The small independant corner store, sole trader, like myself, a cabbie, would be paying either upto 2.75% per transaction or a monthly fee for the machnes plus a transaction fee.

iZettle are 1.75% (PAYG) (only recently gone down from 2.75%) or £20pm PLUS the initial cost of any reader of £75 (or £35 on offer at the moment).

WorldPay charge 2.75% PLUS 20p on their PAYG system. Their monthly subscruibtion tarrif is £19.95 PLUS 2.75% per transaction CC and 0.75% debit cards..

PayPal Here is 2.75% PLUS the intial cost of £75 for the reader.

SumUp charge 1.69% per transaction or 2.95% for virtual/manual transaction PLUS the inital cost of the reader

Square are 1.75% or 2.5% for keyed in transaction PLUS card reader cost.

All of the above are commonly used by SMALL and SOLE traders like myself

There are your "nothing like 2.75% and mythical" rates!
Edited by: "artnada" 7th Jan

shabbird6th Jan

Been waiting for this. Just Eat have been ripping me off.


Not relevant to this topic but I created an order with Just Eat using a voucher code and the same order on the same takeaways own website. It was still cheaper to order direct so I never use Just Eat anymore.

IWOOTN11 h, 53 m ago

Cash will be there for a while yet especially in schools where it's a …Cash will be there for a while yet especially in schools where it's a pound for this and a pound for that. All adhoc PTA things. Would be too awkward to set up transfers for this. I personally don't use cards if under £7-8. However first thing in the morning many stores are self service machines and card only so it's unavoidable here.


Most schools are cashless now even primary schools the bigger schools even have vending machines for stationery which all comes from the parentpay account
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