Fee for using a debit card?
- Thread starter Kronos
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Associate
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It's a card transaction fee typically charged by smaller businesses i.e. takeaways
Associate
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Yes normally have to spend over a fiver in some small shops not to be charged.
tis probably legal, they might have a naff contract with the provider of the card machine meaning they'd otherwise make a loss if someone say bought a mars bar using a debit card - simple solution is to set a minimum or impose a charge below that amount
Caporegime
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Like this in my local Londis. Also, fags don't count for some reason. So you still get charged for buying 20 smokes.
Debit cards used to be a "pence per transaction" charge for the retailer, hence the minimum spend or a charge to use them.
Credit were a % of the transaction.
Visa changed the rules on their cards this year though so their debit cards are a % fee. Europe are not overly happy about that though...
Credit were a % of the transaction.
Visa changed the rules on their cards this year though so their debit cards are a % fee. Europe are not overly happy about that though...
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It's legal but its only really done by short sighted small firms who want to take advantage of all the benefits of accepting card payments but don't want to pay for it themselves.
Presumably they then moan when everyone used the local Tesco Express instead.
Presumably they then moan when everyone used the local Tesco Express instead.
Some small shops do and they can do this, most will want you to spend £5 or so to make it worthwhile. No card transactions are technically free you know
Exactly this.
Debit or Credit Card transactions typically incur a charge for the store owner.
Credit Card charges are typically higher (due to "better server" they add i.e. the fraud checking and higher amounts of money they'll quickly refund etc)
It's more common to see Credit Card charges passed on to the buyer because of this.
Debit Card transactions still have a fee and for smaller businesses this is typically a fixed amount, up to a certain amount (50p for all transactions up to £100 say)
So yeah, a 50p charge if you're buying a 50p can of coke means they loose money if you pay by card.
As such, all retailers are allowed to pass this charge on to customers and most small shops typically say that they'll pass that charge on to you, for the privilege of using your card, unless you spend more than £5 (but sometimes up to £10)
It seems fair enough to me and I'll admit to typically either:
1) Using the cash machine down the road before going to the shop
or 2) Spending up to £5 to top up on biscuits or some coffee
Don't really have a problem with it since I know the ins and outs of it.
probably because there is a decent % profit margin for a lot of products but a pack of fags has a huge chunk of tax included in the price
And it encourages users of the cards they accept to use the store. Can't have it both ways, I tend to avoid stores that do this because it's not as if there is a shortage of convenience stores in today's market is it?
It's because the shop makes pennies per pack of smokes.
Seems pretty reasonable. If they didn't, they'll be loosing money.
For most shops, people buying larger amounts means that'll help subsidize the costs of the smaller amounts.
For the tiny ones, they've got no choice but to pass the costs on. Take the corner shop, for example, when was the last time you saw someone spend more than a tenner? I'd say 90% of purchases there are less than £2.
For most shops, people buying larger amounts means that'll help subsidize the costs of the smaller amounts.
For the tiny ones, they've got no choice but to pass the costs on. Take the corner shop, for example, when was the last time you saw someone spend more than a tenner? I'd say 90% of purchases there are less than £2.
