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Post by overthehill on Apr 28, 2023 10:27:05 GMT
Does anyone know how small retailers are able to add a surcharge of 50p when paying for a £1 doughnut by debit card.
If they charge a service fee it has to be applied to cash payments as well.
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benaj
Member of DD Central
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Post by benaj on Apr 28, 2023 11:32:21 GMT
Did you pay the 50p extra by debit card?
Or was it they have charged you 50p extra without telling you about it?
Could it be donation or tips?
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keitha
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Post by keitha on Apr 28, 2023 11:49:26 GMT
Does anyone know how the baker Baynes are able to add a surcharge of 50p when paying for a £1 doughnut by debit card.
If they charge a service fee it has to be applied to cash payments as well. several of the small businesses local to me have a sign up saying surcharge of 50p on payments less than £5, basically it's because the charges for card processing are often 50P or more. we've actually had a couple go cash only recently as the card charges are so high
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Post by overthehill on Apr 28, 2023 12:10:11 GMT
Does anyone know how the baker Baynes are able to add a surcharge of 50p when paying for a £1 doughnut by debit card.
If they charge a service fee it has to be applied to cash payments as well. several of the small businesses local to me have a sign up saying surcharge of 50p on payments less than £5, basically it's because the charges for card processing are often 50P or more. we've actually had a couple go cash only recently as the card charges are so high
I believe that is a problem as it's illegal. They can add a service charge but it has to apply to cash customers as well. I'm currently checking with trading standards. I'm fairly certain it is breaking mastercard and visa rules as well.
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Post by overthehill on Apr 28, 2023 12:14:13 GMT
Did you pay the 50p extra by debit card? Or was it they have charged you 50p extra without telling you about it? Could it be donation or tips? It was added to the debit transaction and there was nothing charitable about it! Currently not sure how up front they are about it as it is someone else who brought it to my attention. I doubt a £3 purchase costs them anywhere near 50p even if it was legal to do it.
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Post by Deleted on Apr 28, 2023 13:26:56 GMT
Businesses are allowed to refuse to take payments on debit cards (eg minimum £5) and under EU law they are not allowed to have a dual pricing system. EU law still in place. So I'd think illegal.
I'd vote with my wallet. If I had voted for Brexit I'd pay up gladly for this benefit. As a remainer I would shop elsewhere.
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ilmoro
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Post by ilmoro on Apr 28, 2023 15:56:15 GMT
I would agree it is illegal for personal DC or CC. They can charge for taking other forms of payment like cash but only the actual cost to handle it ... can't just charge 50p if it costs 10p for banking. www.gov.uk/government/publications/payment-surchargesIIRC World pay has a monthly fee but most of the other providers (square, sumup etc) are % value, maybe 1.75%, so around 6p. You'd have to spend £25 for them not to be making a profit. |
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Post by overthehill on Apr 30, 2023 19:12:46 GMT
I'm happy any retailer can legally set a minimum card payment amount.
I've discovered a couple of shops who are charging 50p when using a card for purchases under a £1 but they are upfront about it. That is illegal and I'm waiting for trading standards response. Nothing to lose sleep over but it makes it difficult for young kids to buy their lunch across different shops and go cashless, the preferred option for retailers and card companies.
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keitha
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Post by keitha on May 15, 2023 9:44:33 GMT
go cashless, the preferred option for retailers and card companies.
Of course the card companies prefer card payment that's how they make money. I spoke to my local trading standards, most of the surcharge notices have since gone, to be replaced by "minimum card payment £5". We don't have an issue with kids using shops at lunchtime they are not allowed out of school.
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