Chip & Pin surcharge?

[rebelstar]

I noticed just the other day that the chip and pin machines in Safeway have small print on them which say that transactions are subject to a 2.5% surcharge.

Is this normal?

I think they're being very sneaky about it. When you key in your pin, your hand is covering the surcharge notice and they certainly didn't tell me about it.

Tesco doesn't seem to do this and when I asked the lady on the checkout she didn't know anything about it.

If it's just Safeway then they've lost my custom.

[Hughesie2]

I think you'll find that its included in the price, I.E they have to pay it but are legally obliged to inform you of the charge (even though they pay it )

[docevi1]

it's normal.

All places say they charge you 2.5% of the total, but in reality it means 2.5% of the total bill goes to the bank - you don't pay any extra on top of the bill as it were.

Ikea started charging 70p for all transactions on credit-cards (not debit) back in September as it was costing them so much. Apparently most other places are to follow suit.

[neil.b]

anonymous said:

[redacted]

True. Unless you go to Ikea.

[jessica]

neil.b said:

anonymous said: [redacted] True. Unless you go to Ikea.

Yes My local Ikea tried to charge me a surcharge for using my credit card.
I paid Debit card instead,wont be shopping there again.
Wooden swedish crap.
Gimme Habitat anyday.

[docevi1]

jessica said:

neil.b said: True. Unless you go to Ikea. Yes My local Ikea tried to charge me a surcharge for using my credit card. I paid Debit card instead,wont be shopping there again. Wooden swedish crap. Gimme Habitat anyday.

now interpolate that response and see where it gets you

my last shift is on Wednesday

[chrisgr31]

I thought it was something to do with VAT or similar?

There is some creative accounting whereby if you pay by card 2.5% of the transaction goes to a different company in the Group. Is the ruse VAT related?

Obviously when paying by cash one should be asking for a 2.5% discount.

The surcharge for credit cards is different.

[Bat21]

Yes My local Ikea tried to charge me a surcharge for using my credit card.
I paid Debit card instead,wont be shopping there again.
Wooden swedish crap.
Gimme Habitat anyday.[/quote]


Tat = total absence of taste

Habitat= Habitual total absence of taste.

[mcflurry]

chrisgr31 said:

Obviously when paying by cash one should be asking for a 2.5% discount. .

It probably costs the shop the same to process cash... Staff wages to count it, Securicor to collect it etc.
It's not like Ikea want cash to "avoid paying the VAT guv"

[chris1roll]

Credit card handling charges are exempt from VAT, so 2.5% of all transactions (the most allowable) is paid to an "imaginary" company, call it Safeway card processing limited or whatever, in order to "process" the transaction
That way, the supermarkets get 2.5% of every card transaction free of tax, which adds up to quite a lot.

You do not pay any more by paying by card.

It is not related to chip and pin, we have been doing it for ages, it used to be below the signature line on the EFT slip, perhaps you never noticed it before?

Working for Sainsbury's I have had to explain this many, many times.

[z4monster]

jessica said:

[Yes My local Ikea tried to charge me a surcharge for using my credit card. I paid Debit card instead,wont be shopping there again. Wooden swedish crap. Gimme Habitat anyday.

Are you aware that Ikea actually owns Habitaty? I think they use different buyers and have a different company ethos.

But it's still all wooden crap! Not that any of my house is from either shop, honest!

[simpo two]

Hughesie2 said:

I think you'll find that its included in the price, I.E they have to pay it but are legally obliged to inform you of the charge (even though they pay it )

So if you pay cash, you should only pay 97.5% of the till price...?

[catso]

simpo two said:

So if you pay cash, you should only pay 97.5% of the till price...?

'Fraid not, but look at it this way Greedy Gordon misses out on 17.5% of 2.5% of the value.....