Debit card charges changing

[Dixy]

I have been informed by World pay that Visa Debit are changing their charges from pence per transaction to a percentage, as my business is largely £100s per transaction this is bad news anyone else been informed.

[Mr Overheads]

Yes there was a thread on here about it a couple of months ago.

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

[Mr Overheads]

P.S. If you could pm me the letter that wouldbe great, trying to gatehr a picture from as many providers as possible as to how different providers are applying the changes.

[TheHound]

When I first read our letter I was really worried as the majority of our transactions are well over £1000 (and we only accept debit card or BACs transfers) and the proposed percentage would have meant our costs going up by 1500%. However World Pay have agreed a flat rate of 69p per debit card transaction, which owing to our commitment of a minimum monthly fee will mean we should only see a nominal 2-3% increase in our fees.

[Dixy]

The EU have changed the rules and put a cap on. My merchant service provider have increased the debit card fee but not reduced the credit card fee, they say the cap is only the inter-charge fee and does not apply to merchants fees, this makes no sense. Can anyone advise.

[Mr Overheads]

YOur bank is right, the press reporting the cap at the time all got it wrong. The EU also fundamentally misunderstood the market. They put a cap on the interchange fees which was meant to force the banks to pass on the saving they were making to consumers, but of course that's not goin to happen. However on teh flipside it does mean the banks costs are lower so there is more room to negotiate your rates.