How come shops are still charging to use debit cards?

Show1989

I just purchased something that was less than 5 euro in centra. I paid for it via contactless debit card and was charged an extra 25 cent for using my card.

I presumed since Jan 01st that we no longer had to pay to use cards in a shop since there is a a 12c charge per ATM transaction and the maximum that shops can be charged for such transactions has been reduced to to 0.1 per cent (announced by Minister for Finance Michael Noonan at the last budget)

Can anyone confirm or deny this?

seamus

Your observation on the budget is correct, but ultimately there was nothing in the budget which capped the charges that a retailer could levy on a customer for using their card.

I'm sure a number of retailers still do this because it's easy money in their pocket or because the volume of card transactions they do is extremely low.

L1011

I suspect a number of shops haven't actually realised the lower fees charged to them for contactless and are charging the same surcharge they charged for small transactions on chip/swipe.

VincePP

That's the interchange fee that has been reduced. The merchant service provider will still add their fee and then you also have the machine rental fee.

Generally fees to retailers have dropped about 5c for debit cards and 0.2% for credit cards.

A decent size retailer will be paying 12c-25c (down from 15c-30c)for debit card transactions (depends on the card) and 1% - 1.5% for credit cards. (down from 1.25% to 2%). - Contactless would be less.

Considering the cost of lodging cash is about 0.4% - 0.5%, the additional cost of taking a card is quite small for larger retailers, but still a fair difference for smaller ones.

ScouseMouse

The card clearing companies also brought in another charge shortly before the government reduced this charge.

This keeps the charges high.

weldoninhio

Shops should not be charging any levy on debit transactions of any amount any more. You can report them for it. I can't recall where I read about it, but it's in the terms and conditions for having the merchant machine as far as I can recall.

runawaybishop

weldoninhio wrote: »

Shops should not be charging any levy on debit transactions of any amount any more. You can report them for it. I can't recall where I read about it, but it's in the terms and conditions for having the merchant machine as far as I can recall.

Nope, shops are free to charge a fee. They are not free to refuse card usage under X amount.

GM228

runawaybishop wrote: »

Nope, shops are free to charge a fee. They are not free to refuse card usage under X amount.

I understood they could if they display it? I'm not sure if there is anything specific on setting a minimum transaction amount?

ScouseMouse

They are allowed to charge a fee, but its not supposed to exceed the cost of the card processing transaction fee.

That cost can be argued.

runawaybishop

GM228 wrote: »

I understood they could if they display it? I'm not sure if there is anything specific on setting a minimum transaction amount?

Nah, the agreement they sign up to stipulates they can't set a minimum transaction limit but they can charge a fee. A lot of shops though ignore this and insist on only accepting card over say 20 euro

Mick Murdock

Was there a minimum of €5 spend or do they charge a card fee regardless?

For less than €5 I think it's fair enough but there should be a cap.

Phibsboro7

So from the above, the Spar in O'Connell street in Dublin is being unreasonable looking for 50 cent for a 6.50 transaction? At the most,it cost them 25cent?

The staff member called me rude for refusing the pay it - As It ONLY 50cent and wanting to pay in coins instead was RUDE ?

I don't understand this as cash is soooo expensive to lodge and BOI O'Connell street will only take cash from us for two hours, twice a week. I go out of my way in work, not to have to take in cash. So I charge for cash and make credit cards/debit cards free.

This makes no sense - except if you want cash for tax evasion?

L1011

Phibsboro7 wrote: »

This makes no sense - except if you want cash for tax evasion?

Please don't make suppositions of this kind.

weldoninhio

Phibsboro7 wrote: »

This makes no sense - except if you want cash for tax evasion?

Or you just prefer to use cash.

Lux23

ScouseMouse wrote: »

They are allowed to charge a fee, but its not supposed to exceed the cost of the card processing transaction fee.

That cost can be argued.

I was asked to pay an extra €1 a couple of weeks, they couldn't possibly be losing that amount of money on every single charge.