EU Caps Card Fees
Discussion
This was news to me: http://www.bbc.co.uk/news/world-europe-31812810
(Capping card fees at .2% for debit cards and .4 for credit cards)
Currently we pay a weighted average of about 1.4 so it'll be a significant saving for us,
Will be interesting to see how it rolls out.
I'd expect to see lots of admin charges.
Anyone else heard about this or know when it will become the law.
(Capping card fees at .2% for debit cards and .4 for credit cards)
Currently we pay a weighted average of about 1.4 so it'll be a significant saving for us,
Will be interesting to see how it rolls out.
I'd expect to see lots of admin charges.
Anyone else heard about this or know when it will become the law.
The BBC have got the wrong end of the stick.
The EU have capped the fees that VISA/Mastercard (the interchange fees) can charge to the bank.....the bank can still charge the retailer whatever it likes.
It's upto the retailers/business's to challenge the banks/ switch supplier etc if they want lower fees.
The EU have capped the fees that VISA/Mastercard (the interchange fees) can charge to the bank.....the bank can still charge the retailer whatever it likes.
It's upto the retailers/business's to challenge the banks/ switch supplier etc if they want lower fees.
I'm not so sure that is the case. Every source I can see says it's the end retailers who will see the saving.
For example:
http://www.kpmg.com/uk/en/issuesandinsights/articl...
For example:
http://www.kpmg.com/uk/en/issuesandinsights/articl...
That's lazy journalists who don't understand the industry. I've just had a 20 minute conversation with a Merchant Card broker to check I was correct and up to speed.
The big retailers, ASDA, Tesco etc will understand the detail and push back to the banks to pass on the underlying cuts.
The vast majority of SME's won't understand and or most likely won't even be aware and they'll continue to pay what they've always paid unless they negotiate hard.
The change from pence to percentage for debit cards is the biggest issue for SME's and some will get stung.
On top of the Interchange element, to which the cap applies (wholesale cost charged by VISA/Mastercard to the bank), there are the banks margin, transaction fees, authorisation fees, Cardholder Not Present (CNP) fees, terminal rentals etc etc.
The big retailers, ASDA, Tesco etc will understand the detail and push back to the banks to pass on the underlying cuts.
The vast majority of SME's won't understand and or most likely won't even be aware and they'll continue to pay what they've always paid unless they negotiate hard.
The change from pence to percentage for debit cards is the biggest issue for SME's and some will get stung.
On top of the Interchange element, to which the cap applies (wholesale cost charged by VISA/Mastercard to the bank), there are the banks margin, transaction fees, authorisation fees, Cardholder Not Present (CNP) fees, terminal rentals etc etc.
Agree with Mr Overheads. I work in the card payment industry and the media reporting is inaccurate / misleading. The EU has done this supposedly to ensure lowest costs for businesses which they expect to be passed on to consumers in the form of lower priced goods but in other countries where it's been tried (Spain, for example) that hasn't happened.
If you run a SME and take card payments, the best advice is, as with most things, shop around and take the entire range of costs into account when choosing a supplier.
If you run a SME and take card payments, the best advice is, as with most things, shop around and take the entire range of costs into account when choosing a supplier.
Gassing Station | Business | Top of Page | What's New | My Stuff