Ban on card charges being circumvented already
Discussion
The best/worst thing about JE bringing in a 50p service charge is that now all the other online food ordering services will do the same and point to JE as the reason why.
They should have changed the law differently and forced companies to publish how much they pay in card processing fees per transaction and then made it so they could only charge that amount.
JE make 20-30% in commission on every single order via their platform. That’s on top of the several hundred pounds they charge for shops to sign up with them. In 2016 they processed over £136 million in orders. Those orders are likely to be a 50/50 split between cash and card. That’s a lot of extra revenue now coming in to them from the service charge. I’m betting at most it costs them less than 25p in merchant fees per card transaction.
They’ve offered the takeaways on their platform 2 options. Either your customer pays the charge and it gets passed on to us or you pay us the charge. Either way they win. It’s madness!
They should have changed the law differently and forced companies to publish how much they pay in card processing fees per transaction and then made it so they could only charge that amount.
JE make 20-30% in commission on every single order via their platform. That’s on top of the several hundred pounds they charge for shops to sign up with them. In 2016 they processed over £136 million in orders. Those orders are likely to be a 50/50 split between cash and card. That’s a lot of extra revenue now coming in to them from the service charge. I’m betting at most it costs them less than 25p in merchant fees per card transaction.
They’ve offered the takeaways on their platform 2 options. Either your customer pays the charge and it gets passed on to us or you pay us the charge. Either way they win. It’s madness!
Honestly, it's stopped me from using just eat. Used to use it every 2nd day for my lunch at a local takeaway. I wouldn't mind if the charge was a % of the final bill. 50p on a £40 family curry night obviously ain't the end of the world. When it is just a £5/6 sushi/burger you've ordered so it's ready by the time you pop down, the 50p is a bit more painful.
It really is a pain as it was so convenient, now options are to do it the old fashioned way and call ahead. Or just order in there and wait 5-10mins.
I will admit, it really is the epitome of a 1st world problem.
It really is a pain as it was so convenient, now options are to do it the old fashioned way and call ahead. Or just order in there and wait 5-10mins.
I will admit, it really is the epitome of a 1st world problem.
popeyewhite said:
Law says businesses should pay, but greed wins the day once again.
'Scam' thread.
Stupid law doesn’t allow businesses to pass on costs to customers paying with a particular method (even though that method costs the businesses more), so quite naturally the businesses are forced to recoup those costs from ALL customers instead.'Scam' thread.
If you don’t like it, don’t use the business concerned, it’s not (or it shouldn’t be) rocket science!
sidicks said:
Stupid law doesn’t allow businesses to pass on costs to customers paying with a particular method (even though that method costs the businesses more), so quite naturally the businesses are forced to recoup those costs from ALL customers instead.
Exactly how does it cost the company money? Do credit card companies actually charge for using their much-publicised services?They don’t mention that when they ram credit cards down our faces on tv ads, as being the solution to all our economic woes.
King Herald said:
Exactly how does it cost the company money? Do credit card companies actually charge for using their much-publicised services?
They don’t mention that when they ram credit cards down our faces on tv ads, as being the solution to all our economic woes.
Yes - they charge a percentage of the transaction.They don’t mention that when they ram credit cards down our faces on tv ads, as being the solution to all our economic woes.
Somewhere between .5% and 2.5%
King Herald said:
Exactly how does it cost the company money? Do credit card companies actually charge for using their much-publicised services?
Do you think they operate as a charitable service for the benefit of the population?
King Herald said:
They don’t mention that when they ram credit cards down our faces on tv ads, as being the solution to all our economic woes.
That’s a strange interpretation of businesses offering (optional) products to help make people’s lives easier.sidicks said:
Stupid law doesn’t allow businesses to pass on costs to customers paying with a particular method (even though that method costs the businesses more), so quite naturally the businesses are forced to recoup those costs from ALL customers instead.
If you don’t like it, don’t use the business concerned, it’s not (or it shouldn’t be) rocket science!
You've misread my post. I never said I'd paid the charge.If you don’t like it, don’t use the business concerned, it’s not (or it shouldn’t be) rocket science!
wisbech said:
No, law says they can’t discriminate by payment method. Doesn’t say that they have to absorb the cost.
The cost is the advertised price, not the the extra charges added at the end to save the business a few quid. That's a rip-off.wisbech said:
Should a pub have to publish its whole sale price for drinks and be limited in markup?
Irrelevant, but by law the pub has to display the price of soft drinks anyway. Pubs are aren't a particularly good example to bolster your cause as somecharge completely outrageous prices for alcohol as it is.sidicks said:
King Herald said:
Exactly how does it cost the company money? Do credit card companies actually charge for using their much-publicised services?
Do you think they operate as a charitable service for the benefit of the population?King Herald said:
They don’t mention that when they ram credit cards down our faces on tv ads, as being the solution to all our economic woes.
That’s a strange interpretation of businesses offering (optional) products to help make people’s lives easier.
I must have missed something.
It is only recently that I have noticed the occasional purchase on line has said there is a fee for using a credit card, namely government operations actually.
TwigtheWonderkid said:
I don't know why anyone has interfered in this with stupid legislation. Paying by card costs the seller, so why shouldn't they pass that cost on. What about firms selling high ticket items for low commission? A travel agent might sell a £5K holiday for 5% commission. £250. If their card provider charges 2.5%, which is typical, that's half their profit!! Of course they should be able to pass this onto the punter.
I wish the EU and government would just leave business alone to get on with being businesses. If they rip off their customers, someone else will start up who doesn't and put them out of business.
No business who is selling multiple items for £5k should be paying credit card merchant charges of anywhere near 2.5%.I wish the EU and government would just leave business alone to get on with being businesses. If they rip off their customers, someone else will start up who doesn't and put them out of business.
If they can't negotiate decent fees with suppliers then maybe someone else can and put them out of business........
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