50p to use your card....why?
Discussion
Some shops charge 50p to use your credit/debit card. Or you have to spend over £xx amount. Why is this?
I know I will get "it's only 50p" replies, but you can go in the shop next door and buy what you want for any amount with no charge. Are the shopkeepers just trying to make a quick buck?
I know I will get "it's only 50p" replies, but you can go in the shop next door and buy what you want for any amount with no charge. Are the shopkeepers just trying to make a quick buck?
Most cornershops have either a fiver or a tenner limit on card purchases.
Since I only really visit my local cornershop to buy stamps, milk, or a ready meal if I've not planned myself correctly, I usually end up buying a few beers as well so I spend enough to stick it on card. Never understood why you get charged to access your own money. Wonder what the local pub would say if I told them I'd love to pay £3.60 for a pint of Heineken, but there's a transaction charge of 50p
Since I only really visit my local cornershop to buy stamps, milk, or a ready meal if I've not planned myself correctly, I usually end up buying a few beers as well so I spend enough to stick it on card. Never understood why you get charged to access your own money. Wonder what the local pub would say if I told them I'd love to pay £3.60 for a pint of Heineken, but there's a transaction charge of 50p
There is a fixed amount for debit cards and a % charged for credit cards.
Depending on turnover or if you are part of a trade organisation the costs can be quite reasonable.
For me it is worth paying the fees so that I do not have to deal with the feckwits at the bank , who try to tell me that I am not allowed to x y and z. Actually I am , but cannot be arsed to argue the toss
Depending on turnover or if you are part of a trade organisation the costs can be quite reasonable.
For me it is worth paying the fees so that I do not have to deal with the feckwits at the bank , who try to tell me that I am not allowed to x y and z. Actually I am , but cannot be arsed to argue the toss
As above, it's because of the charges. We charge 25p on credit/debit cards for transactions under £5. It's a very rare occurance anyone will actually try this, because most people will buy fags, and even L&B 20s are at £6+ now. Really what we try and discourage is people coming in, picking up a 60p chocolate bar, paying on card, and wanting £50 cashback.
We'd rather you just paid cash too
We'd rather you just paid cash too
sebhaque said:
Wonder what the local pub would say if I told them I'd love to pay £3.60 for a pint of Heineken, but there's a transaction charge of 50p
I see this most weekends. Some people just keep on buying their drinks on a card, which means the barstaff need to find or wait for the PDQ machine, then the usual wrong PIN, then wait for a receipt, or swap to a different machine, and when asked if they want any cashback, what happens?NO.
After all, they don't need to wait ages to get served, only the people after them!
The credit card companies take around 2% of the transaction value and debit cards incur a charge of about 25-40p per transaction.
I suppose small retailers prefer to pass the cost on to the customer if they choose to use the card rather than eat into their margins, cigarettes for example have a low profit margin per pack, so if you pay for a packet of cigarettes with a debit card then half the profit goes to the card company/bank instead of the shopkeeper.
If this in Tesco or Asda etc they can absorb this but small shopkeepers have tighter budgets to keep to.
I suppose small retailers prefer to pass the cost on to the customer if they choose to use the card rather than eat into their margins, cigarettes for example have a low profit margin per pack, so if you pay for a packet of cigarettes with a debit card then half the profit goes to the card company/bank instead of the shopkeeper.
If this in Tesco or Asda etc they can absorb this but small shopkeepers have tighter budgets to keep to.
My company charge customers 5% for credit cards (including AmEx) but free for debit cards. (as if I get paid by cheque I've got to go to the bank and I get charged for it so it's worthwhile encouraging people to pay via debit)
It cost me £25 per month standing order, £0.35 per debit card transaction, 2.5% on visa/master cards and 2.8% on AmEx, or thereabouts.
Most people charge for debit and 6% for cards so I'm cheap.
It cost me £25 per month standing order, £0.35 per debit card transaction, 2.5% on visa/master cards and 2.8% on AmEx, or thereabouts.
Most people charge for debit and 6% for cards so I'm cheap.
Digger said:
How much are these alleged fees that the shop-owners have to pay?
Not alleged at all. In order for a trader to be able to accept credit or debit card transactions from their customers, they must pay fees and charges to a bank or credit card supplier. The charges are made up of a number of elements. There will be a charge based on the volume of transactions carried out each month. There will also be a monthly fixed charge for the rent of the card processing machine(s) used by the retailers. Dog Star said:
Got to be a good "tax" on students, has that one.
I've seen the b
ds pay for a pint of lager on Visa.
Why bI've seen the b
ds pay for a pint of lager on Visa.ds? I do this all the time (well, not one pint, but often enough two and some nuts) I just find it easier than carrying round notes and a pocket full of change. Seems I'm behaving like an incorrigible
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