Contactless Cards; what's the spend minimum?

Losty Dublin

Last night I was in local off licence and grabbed something that was priced at €8.  I went to pay with contactless only to be told that they have a minimum spend of €10 and that I'd have to get something else to make it over the €10.  

When I said to them that I've used it before in the shop without problems (I have, many times.) I was told that my transaction shouldn't have been entertained on those occasions.  I mentioned that I've used it to pay for small things in some shops (I bought  49 cent apple in Super Valu once as well as papers and bottles of water in Boots.) and was informed that the bank charges are the same both for contactless and PIN verified purchases and that it cost them money and that was that, I could pay for more or go elsewhere.   In the end I took my business elsewhere, bemused and a little annoyed by the experience.

So guys with this in mind but is the shop correct in imposing a minimum limit for contactless transactions?  Are they charged the same for both types of transactions?  Can they refuse to accept a contactless payment and insist on a PIN one instead?   

Opinions?

Nichard Dixon

Bank of Ireland may not be supplying service to the shop, so it is hard to know what the shop pays. But say they pay 5c, then that is their profit margin gone on an apple. What do you expect them to do, put the price up to 55c so you can use your card?

Bank of Ireland: Sarah

Losty Dublin wrote: »

Last night I was in local off licence and grabbed something that was priced at €8.  I went to pay with contactless only to be told that they have a minimum spend of €10 and that I'd have to get something else to make it over the €10.  

When I said to them that I've used it before in the shop without problems (I have, many times.) I was told that my transaction shouldn't have been entertained on those occasions.  I mentioned that I've used it to pay for small things in some shops (I bought  49 cent apple in Super Valu once as well as papers and bottles of water in Boots.) and was informed that the bank charges are the same both for contactless and PIN verified purchases and that it cost them money and that was that, I could pay for more or go elsewhere.   In the end I took my business elsewhere, bemused and a little annoyed by the experience.

So guys with this in mind but is the shop correct in imposing a minimum limit for contactless transactions?  Are they charged the same for both types of transactions?  Can they refuse to accept a contactless payment and insist on a PIN one instead?   

Opinions?

Hi Losty Dublin, 

Thanks for contacting us here on Boards. 

It would be down to the individual retailer to decide whether they can accept Contactless payments under €10, this would be a decision this retailer has made themselves which we would have no control over. While there is a maximum spend of €30 when using Contactless, there is no minimum charge.

Please let us know if we can help with any other query.

Thanks,
Sarah

Losty Dublin

Thanks for that, Sarah.  In general, are the merchant fees the same for the retailers for both transactions?  

Bank of Ireland: Sarah

Losty Dublin wrote: »

Thanks for that, Sarah.  In general, are the merchant fees the same for the retailers for both transactions?  

Hi Losty Dublin, 

Thanks for your reply. 

We wouldn't have that information here, as it can depend on the individual retailers point of sale provider. 

Thanks,
Sarah

Arbie

I asked the Banking and Payments Federation of Ireland (new name for IPSO) about this a few months ago.

They said that retailers are obliged to accept all cards under the brands they have signed up for - Visa, Mastercard, etc. - and that requiring a minimum transaction limit or charging a fee means the retailer is a breach of their terms and conditions.

BPFI has no regulatory/enforcement powers but are apparently trying to address it.