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Credit Card Refused

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  • 25-09-2013 5:24pm
    #1
    saltyjack silverblade
    Closed Accounts Posts: 480 ✭✭


    I was buying my student bus ticket today which costs E91.50 for 30 days. When I handed in my credit card to pay the shop said sorry we don't take those, only debit. This happened in two more shops. They hadn't even put the card in the machine for payment, they just blankly refused. I used it to pay in the 4th shop.

    Does anyone have an explanation as to why this is happening?


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    #2
    jameshayes
    Registered Users Posts: 3,772 ✭✭✭jameshayes


    many shops (inc all lidl & aldi stores) don't accept credit, only debit - presumably due to the % of the sale paid to visa / MC.. there is no/very little profit margin on the sale of a bus ticket (and lotto for that matter), shops only sell them in hope you buy something else, if you pay for a bus ticket with your credit, there is a good chance the shop is losing money


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    #3
    saltyjack silverblade
    Closed Accounts Posts: 480 ✭✭saltyjack silverblade


    Do you know what % they are charged? I have paid for stuff in Lidl with a credit card. Last Thursday to be exact.


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    #4
    emeldc
    Registered Users Posts: 2,594 ✭✭✭emeldc


    The retailer is charged up to 3% or more for accepting credit cards. They're probably not making 3% on the bus ticket.

    Lidl have a much greater margin on their products and they may have a better deal with the banks where they are charged a smaller %.


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    #5
    Red Nissan
    Registered Users Posts: 3,055 ✭✭✭Red Nissan


    saltyjack silverblade wrote: »
    Do you know what % they are charged? I have paid for stuff in Lidl with a credit card. Last Thursday to be exact.

    Interesting.


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    #6
    L1011
    Registered Users Posts: 68,116 ✭✭✭✭L1011


    jameshayes wrote: »
    many shops (inc all lidl & aldi stores) don't accept credit, only debit

    Lidl started accepting credit cards within the last few months.

    As explained, using a card to buy certain items ends up causing the shop to lose money.


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    #7
    ironclaw
    Registered Users Posts: 8,004 ✭✭✭ironclaw


    emeldc wrote: »
    The retailer is charged up to 3% or more for accepting credit cards. They're probably not making 3% on the bus ticket.

    This is entirely correct. Also to add a retailer does not have to accept any form of card as payment.


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    #8
    saltyjack silverblade
    Closed Accounts Posts: 480 ✭✭saltyjack silverblade


    ironclaw wrote: »
    This is entirely correct. Also to add a retailer does not have to accept any form of card as payment.

    I can accept the any form of card as payment but they really should have a notice up, which none of them did.
    It would make me reluctant to use a card as a sole reliance of payment rather than my debit card.


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    #9
    mathepac
    Banned (with Prison Access) Posts: 4,991 ✭✭✭mathepac


    MYOB wrote: »
    Lidl started accepting credit cards within the last few months... .
    Real credit-cards or the top-up SWIRL / RyanAir jobs where the card-holder pays all the charges?


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    #10
    jameshayes
    Registered Users Posts: 3,772 ✭✭✭jameshayes


    MYOB wrote: »
    Lidl started accepting credit cards within the last few months.

    As explained, using a card to buy certain items ends up causing the shop to lose money.

    Yup - didn't hear that

    "Now accepting Credit Cards!"

    http://www.lidl.ie/cps/rde/xchg/lidl_ri_ie/hs.xsl/customer-service.htm


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    #11
    skydish79
    Registered Users Posts: 841 ✭✭✭skydish79


    Banks government want us to use less cash, can you imagine if we started using our credit cards more they would probably hike the % up

    Im sure we are really paying the % charge its just added into the cost of goods


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    #12
    Max Power 2010
    Registered Users Posts: 422 ✭✭Max Power 2010


    <SNIP - watch the language and tone)


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    #13
    L1011
    Registered Users Posts: 68,116 ✭✭✭✭L1011


    mathepac wrote: »
    Real credit-cards or the top-up SWIRL / RyanAir jobs where the card-holder pays all the charges?

    Real although I doubt they'll refuse any prepaid-with-chip ones.


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    #14
    ScouseMouse
    Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    The bus tickets gets the shop 4%

    The credit card costs the shop between 2% and 4%

    So, in effect, your transaction was as good as worthless.


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    #15
    ScouseMouse
    Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    mathepac wrote: »
    Real credit-cards or the top-up SWIRL / RyanAir jobs where the card-holder pays all the charges?

    Does not matter. Shop pays.


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    #16
    Cabaal
    Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,470 Mod ✭✭✭✭Cabaal


    saltyjack silverblade wrote: »
    I can accept the any form of card as payment but they really should have a notice up, which none of them did.
    It would make me reluctant to use a card as a sole reliance of payment rather than my debit card.

    Did the shop have anything up saying they did accept credit cards?

    If not then you merely assumed the would, I don't see why they need a sign up saying they don't.


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    #17
    Geuze
    Registered Users Posts: 13,185 ✭✭✭✭Geuze


    jameshayes wrote: »
    many shops (inc all lidl & aldi stores) don't accept credit, only debit - presumably due to the % of the sale paid to visa / MC..

    Lidl now accept CC, which I found unusual.

    CC merchant fees can be as high as 1.5%, or maybe more.

    EDIT - I see 3% mentioned - that is crazy high.


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    #18
    saltyjack silverblade
    Closed Accounts Posts: 480 ✭✭saltyjack silverblade


    Cabaal wrote: »
    Did the shop have anything up saying they did accept credit cards?

    If not then you merely assumed the would, I don't see why they need a sign up saying they don't.

    I would assume a credit card is a standard form of payment and once they have those card machines then they would accept it.


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    #19
    Bepolite
    Closed Accounts Posts: 2,737 ✭✭✭Bepolite


    The shop doesn't have to accept any payment full stop. There is no need for a sign, you've no right to buy anything in a shop. I'm not trying to have a go at you OP just explain the situation.


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    #20
    saltyjack silverblade
    Closed Accounts Posts: 480 ✭✭saltyjack silverblade


    Bepolite wrote: »
    The shop doesn't have to accept any payment full stop. There is no need for a sign, you've no right to buy anything in a shop. I'm not trying to have a go at you OP just explain the situation.

    I know what the legal situation is, but there is an assumption when you are purchasing goods, with a card machine on display, that a credit card would be acceptable.


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    #21
    Bepolite
    Closed Accounts Posts: 2,737 ✭✭✭Bepolite


    saltyjack silverblade wrote: »
    I know what the legal situation is, but there is an assumption when you are purchasing goods, with a card machine on display, that a credit card would be acceptable.

    I'm not sure I agree with that, just taking the number of people on this thread that don't seem to assume it. To be fair I can see your point of view I just think most people realise to be honest.


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    #22
    Glenbhoy
    Registered Users Posts: 1,852 ✭✭✭Glenbhoy


    Geuze wrote: »
    Lidl now accept CC, which I found unusual.

    CC merchant fees can be as high as 1.5%, or maybe more.

    EDIT - I see 3% mentioned - that is crazy high.

    2.5% is common enough, but I haven't heard of it being higher than that. It's up to the shop whether or not to accept the cards or not, but it's unlikely that they'll be losing money on the transaction. And I disagree that the difference between 4% commission for the bus and the 2.5% charge on a €91.50 transaction is worthless, in fact I think it was a reasonable return for the shop for one transaction, not as high as if they could have the consumer pay in cash, but still, decent enough.

    Incidentally, I was in a shop recently where I tried to pay for €8.00 odd of goods with a credit card, the guy at the till told me that it would cost an extra 35c if I wanted to pay with card on transactions below €10, I paid with cash and told him that I was fairly sure his demand was illegal, it's okay to have a limit, but you can't demand extra to facilitate card payments? In any event, he was a nice guy and I understood why he thought that his demand was acceptable.


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    #23
    ScouseMouse
    Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    We are a LONG way from a cashless society.

    The banks can tell their customers what they like, but it is only self serving.

    Until they lower their charges, we cannot go any further. I saw a mention above of 91 euro and whether it was worthwhile. If that was me, I would have done the maths and probably accepted it as I would still have been left with something.

    But most tickets are well under that, so whatever shop it was, was just following his instructions.


    In general though, if you only make 4% on something, handing over 2/3% to a bank makes it pointless. Then you have to pay the staff......


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    #24
    3DataModem
    Registered Users Posts: 3,973 ✭✭✭3DataModem


    superscouse wrote: »
    The bus tickets gets the shop 4%

    The credit card costs the shop between 2% and 4%

    So, in effect, your transaction was as good as worthless.

    If you are paying that for domestic / European card processing, you are paying too much.


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    #25
    andersat2
    Registered Users Posts: 342 ✭✭andersat2


    saltyjack silverblade wrote: »
    I was buying my student bus ticket today which costs E91.50 for 30 days. When I handed in my credit card to pay the shop said sorry we don't take those, only debit. This happened in two more shops. They hadn't even put the card in the machine for payment, they just blankly refused. I used it to pay in the 4th shop.

    Does anyone have an explanation as to why this is happening?


    1. Why not to buy on-line? They delivering tickets by anpost usually next day.
    2. Why not to buy in normal local shops (Centra, Spar, Mace etc)? I mean those old fashion newsagents with overpriced items trying to save on everything, including not accepting credit cards (saving bank fees). I'm ignoring them for a long time already.
    3. Visa/Mastercard charges bank for every transaction. Bank charges retailer after that as well. Small retailers not able to pay those hi fees. (Big retailers have some sort of discounts on that)


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    #26
    Corkbah
    Registered Users Posts: 1,668 ✭✭✭Corkbah


    andersat2 wrote: »
    1. Why not to by on-line? They delivering tickets by anpost usually next day.
    2. Why not to buy in normal local shops (Centra, Spar, Mace etc)? I mean those old fashion newsagents with overpriced items trying to save on everything, including not accepting credit cards (saving bank fees). I'm ignoring them for a long time already.
    3. Visa/Mastercard charges bank for every transaction. Bank charges retailer and customer after that as well. Small retailers not able to pay those hi fees. (Big retailers have some sort of discounts on that)

    dont forget we also pay bank charges on our purchases - so the banks charge everyone for their service !!


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    #27
    Beagslife
    Registered Users Posts: 304 ✭✭Beagslife


    Just out of interest, what type of student bus ticket costs €91.50 a month. Do you get to keep the bus. I'm getting old!

    saltyjack silverblade wrote: »
    I was buying my student bus ticket today which costs E91.50 for 30 days. When I handed in my credit card to pay the shop said sorry we don't take those, only debit. This happened in two more shops. They hadn't even put the card in the machine for payment, they just blankly refused. I used it to pay in the 4th shop.

    Does anyone have an explanation as to why this is happening?


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    #28
    SpaceTime
    Closed Accounts Posts: 9,088 ✭✭✭SpaceTime


    Until the banks stop gouging retailers and consumers for using cards, they simply won't take off in Ireland in the way that they have elsewhere.

    I keep coming across pointless articles about how it's 'cultural'.
    It's cultural because the banks have a culture of ripping people off with high charges it's as simple as that.

    Make cards affordable to use for both payer and payee and they'll take off in a big way.

    I mean, why would I pay a banking charge to use my contactless debit card to buy the newspaper?
    I might as well just throw some cash into the bankers' benevolent fund box.

    People don't use things because they're 'high tech'. They use them because they're convenient and cost effective.


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    #29
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    The small shopkeepers are the whole time penalising their loyal customer because they get shafted by credit card companies or mobile companies or the banks fees when we pay in cash etc etc............ENOUGH! stop trying to pass on the cost of running a business to the customer! Having a shop it is accepted that you sell phone top ups and take cresit and debit cards. If ye have a problem with the costs then ye are in the wrong business and should close up shop.


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    #30
    SpaceTime
    Closed Accounts Posts: 9,088 ✭✭✭SpaceTime


    foggy_lad wrote: »
    The small shopkeepers are tue whole time penalising their loyal customer for them being shafted by credit card companies or mobile companies or tue banks fees wheb we pay in cash.......ENOUGH! stop trying to pass on the cost of running a business to tue customer! Having a shop it is accepted that you sell phone top ups and take cresit and debit cards. If ye have a problem with the costs then ye are in the wrong business and should close up shop.

    While there's an element of some of the small retailers not shopping around enough for a cheaper acquirer of credit cards, the amount of hoops that banks put you through and the high fees for merchant accounts etc are what drives that.

    If you're a major chain like Tesco you are in a position to bully the banks into coming up with a decent price for you and because of the huge volume of transactions, no bank in their right mind is going to turn you away. Small players are just shafted.

    I do think though that small shop keepers should band together and see if they can hammer out some better deals on these things.

    Their representative bodies should really be hammering this one home very hard.


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    #31
    Corkbah
    Registered Users Posts: 1,668 ✭✭✭Corkbah


    SpaceTime wrote: »
    Until the banks stop gouging retailers and consumers for using cards, they simply won't take off in Ireland in the way that they have elsewhere.

    I keep coming across pointless articles about how it's 'cultural'.
    It's cultural because the banks have a culture of ripping people off with high charges it's as simple as that.

    Make cards affordable to use for both payer and payee and they'll take off in a big way.

    I mean, why would I pay a banking charge to use my contactless debit card to buy the newspaper?
    I might as well just throw some cash into the bankers' benevolent fund box.

    People don't use things because they're 'high tech'. They use them because they're convenient and cost effective.

    you will be paying bank charges on every transaction with your card, cheapest solution is cash withdrawal at start of the week/month and budget accordingly...... problem is you spend more when you physically have cash and you spend more when you dont notice how much you are spending (cards only)


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