Debit Card Transations Moving to a %age Fee instead

[The Moose]

Anyone else going to suffer from the new change in March moving from a pence per transaction fee on debit cards to a %age basis?

I'm lead to believe that the %age isn't going to be that big, but no one seems to be able to actually tell me what it may be!

Obviously if you're doing many small card transactions (sweet shop etc), then it'll be beneficial, however if you do a smaller number but of large value, it'll be a pain.

Hope the Fast Pay system can keep up!!!

[The Moose]

Obviously no one else is worried about it!!

[Mr Overheads]

Good article here:
http://www.cardswitcher.co.uk/2014/10/uk-card-proc...

Whether it affects you depends on your average transaction value AND the change of rates your provider is offering, if they are changing at all. Under £35 you should be better off, over £35 worse off IF they pass on the underlying interchange rate changes exactly.

[eco21]

Is this a wholesale change or only certain merchants. Also if you are muf contract does it happen when you start a new contract.

[Mr Overheads]

eco21 said:

Is this a wholesale change or only certain merchants. Also if you are muf contract does it happen when you start a new contract.

As per the article I linked above, it's the underlying interchange fees by Visa/Mastercard that are changing. i.e the supplier to the merchant is changing how it charges teh merchant. So some merchants will change how they charge you and some won't. You need to talk to your merchant. it also depends on your average transaction value. If it's less than £35 it's not in teh merchants interest to change your fees i.e. they'll make more margin from you. Obviously the converse is also true.

[The Moose]

It'll certainly be interesting. I understand there's going to be a cap per transaction. I wonder whether they'll look to maintain the same profit margin %age or the same profit margin pence or somewhere in the middle.