Ban on card charges being circumvented already

[sidicks]

oyster said:

No business who is selling multiple items for £5k should be paying credit card merchant charges of anywhere near 2.5%.

If they can't negotiate decent fees with suppliers then maybe someone else can and put them out of business........

You are free to use other businesses instead or use a debit card to avoid the fee.

Edited by sidicks on Monday 15th January 11:55

[sidicks]

King Herald said:

How many years/decades have I been using credit cards in stores and petrol stations and never had to pay more than the price tag on an item?

I must have missed something.

Presumably you’ve missed the fact that the prices already include an implicit cost to cover credit card fees...

King Herald said:

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.

It’s been standard for years, particularly for Amex where fees are higher. Many small shops impose minimum purchase amounts for the same reason.

[andy43]

Small business using a portable credit card machine and base station on a fairly competitive rate :
Mastercard premium credit @1.25%
Mastercard credit @1.25%
Uk mastercard debit @ £0.85 per item
UK Visa Delta @ £0.85 per item
Visa credit @ 1.25%
Electronic authorisations @ £0.02 on every item
Data security fee £2.40 per month
Portable handset hire £13.00 per month
Base station hire £5.00 per month
HTH
eta Amex - don't even go there!

[eldar]

andy43 said:

Small business using a portable credit card machine and base station on a fairly competitive rate :
Mastercard premium credit @1.25%
Mastercard credit @1.25%
Uk mastercard debit @ £0.85 per item
UK Visa Delta @ £0.85 per item
Visa credit @ 1.25%
Electronic authorisations @ £0.02 on every item
Data security fee £2.40 per month
Portable handset hire £13.00 per month
Base station hire £5.00 per month
HTH
eta Amex - don't even go there!

All of which are cheaper than banking cash.

[King Herald]

sidicks said:

King Herald said:

How many years/decades have I been using credit cards in stores and petrol stations and never had to pay more than the price tag on an item?

I must have missed something.

Presumably you’ve missed the fact that the prices already include an implicit cost to cover credit card fees...

And if I pay cash? I don’t recall getting any sort of a discount.

What IS the proper price, if all prices are raised slightly to cover the possibility people might pay by card? Cash buyers are being penalised?

[Jockman]

Cash can frequently be the very worst method of payment.

[hairyben]

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.

Ironically if a lot of lean-priced businesses decide to not take credit cards, then the people worst affected with be the month-to-monthers living on credit that the EU is trying "help" (in reality what they're doing is enabling but thats another discussion), plus we'll all be affected by removal of credit card protections - I've happily paid the extra when using a credit card anywhere I'm not 100% sure on, I use credit card mostly as it's easier to bin it when it gets scammed and get another, without worrying about my main bank account being compromised or locked out.

Yet another one to chalk on the list of unintended consequences by meddling idiots with a fools simplistic understanding of a concept.

[V8mate]

eldar said:

andy43 said:

Small business using a portable credit card machine and base station on a fairly competitive rate :
Mastercard premium credit @1.25%
Mastercard credit @1.25%
Uk mastercard debit @ £0.85 per item
UK Visa Delta @ £0.85 per item
Visa credit @ 1.25%
Electronic authorisations @ £0.02 on every item
Data security fee £2.40 per month
Portable handset hire £13.00 per month
Base station hire £5.00 per month
HTH
eta Amex - don't even go there!

All of which are cheaper than banking cash.

The takeaways can use the cash to pay the staff.

The debit card costs^ are quite high. I genuinely find it amazing that you don't see more 'minimum spend' notices, especially in convenience stores, where the charge can often exceed the profit.

[Wombat3]

V8mate said:

eldar said:

andy43 said:

Small business using a portable credit card machine and base station on a fairly competitive rate :
Mastercard premium credit @1.25%
Mastercard credit @1.25%
Uk mastercard debit @ £0.85 per item
UK Visa Delta @ £0.85 per item
Visa credit @ 1.25%
Electronic authorisations @ £0.02 on every item
Data security fee £2.40 per month
Portable handset hire £13.00 per month
Base station hire £5.00 per month
HTH
eta Amex - don't even go there!

All of which are cheaper than banking cash.

The takeaways can use the cash to pay the staff.

The debit card costs^ are quite high. I genuinely find it amazing that you don't see more 'minimum spend' notices, especially in convenience stores, where the charge can often exceed the profit.

The days of cheap debit card costs are coming to an end as another side effect of this legislation I think. They will line up at the same rates as Visa

[vikingaero]

eldar said:

andy43 said:

Small business using a portable credit card machine and base station on a fairly competitive rate :
Mastercard premium credit @1.25%
Mastercard credit @1.25%
Uk mastercard debit @ £0.85 per item
UK Visa Delta @ £0.85 per item
Visa credit @ 1.25%
Electronic authorisations @ £0.02 on every item
Data security fee £2.40 per month
Portable handset hire £13.00 per month
Base station hire £5.00 per month
HTH
eta Amex - don't even go there!

All of which are cheaper than banking cash.

You forgot the price of thermal rolls...

You don't have to bank cash. Many companies churn the cash through wages or suppliers. My Dad was offered 5% off cash on delivery or no discount if he wanted credit terms.

[Countdown]

vikingaero said:

tight fart said:

I was told there's no vat on take aways but I thought there was, can anyone clarify?

Hot takeaway food has VAT.

Just for clarification, most smaller Just Eat premises will pay commission of 30%, and there's JE bleating at how they have to pass it on.

It’s 10% for my brother’s takeaway. He doesn’t like them and is gradually moving away having built his own online website.