Extra charge for debt card payments legality in shop?

drunkmonkey · 19-02-2019 10:22am #1

The local shop has brought in a service charge for paying by credit or debit cards. So a normally €3 item is now €3.50 by debit card or €3 cash.
I though this was illegal but there calling it a service charge, is it legal as long as you call it a service charge?
It's a flat charge of 50cent on every transaction as long as there's a card involved.

LizardKing · 19-02-2019 10:23am

https://www.irishtimes.com/news/ireland/irish-news/additional-charges-no-longer-apply-to-credit-card-transactions-1.3354793

L1011 · 19-02-2019 10:24am

Prohibited under the Payment Services Directive 2 for over a year now; also was generally against the merchant agreements the retailer had with the banks/provider before then although that required reporting them and waiting to see if anything was done.

Mr. Incognito · 19-02-2019 10:28am

How do you report them

My local shop charges 50C surcharge to top up a leap card by card.

drunkmonkey · 19-02-2019 10:28am

So what do you do in this case, who do you report it to. Is there any penalty for doing it or is it just a case of the card company telling them stop?

drunkmonkey · 19-02-2019 10:30am

LizardKing wrote: »

https://www.irishtimes.com/news/ireland/irish-news/additional-charges-no-longer-apply-to-credit-card-transactions-1.3354793

That article says
"Already there is evidence of some companies replacing the card surcharge with a ‘service charge’,” said the Consumer Council. “ We may also see more businesses impose a minimum spending limit, or a refusal of card payments altogether."

This is what I'm on about there calling it a service charge, is that a loophole?

LizardKing · 19-02-2019 10:31am

yep ... read this too

https://www.csna.ie/credit-debit-card-surcharges/

looks like it might be ok for services and if they have a notice up

L1011 · 19-02-2019 10:39am

LizardKing wrote: »

yep ... read this too

https://www.csna.ie/credit-debit-card-surcharges/

looks like it might be ok for services and if they have a notice up

They have to charge the service charge for cash too, in that case.

This isn't something written in a manner to allow weaseling around it, e.g. "discounts for cash" or just renaming the surcharge.

MarkY91 · 19-02-2019 10:50am

My local mace do these 50c charges for credit, leap card, gas/electricity card top ups. So I can report these chancers?

It only started happening when it went from Irish owner to Pakistani owned. They also now sell "not for individual sale" items individually.

L1011 · 19-02-2019 11:06am

MarkY91 wrote: »

My local mace do these 50c charges for credit, leap card, gas/electricity card top ups. So I can report these chancers?

Payzone would probably be the quickest and easiest way really.

MarkY91 wrote: »

They also now sell "not for individual sale" items individually.

This is not illegal nor is there anything wrong with the products.

robarmstrong · 19-02-2019 11:18am

I've noticed that Just-Eat charge a card processing fee?

Also, when you order by card some places charge €1 extra for card payments, so they're either unaware of the change or simply nobody has reported them?

L1011 · 19-02-2019 11:19am

Just Eat changed to charging the same fee for cash as a 'service fee'; which is legit as it is charged to everyone.

Outkast_IRE · 19-02-2019 11:24am

MarkY91 wrote: »

It only started happening when it went from Irish owner to Pakistani owned. They also now sell "not for individual sale" items individually.

I don't blame them for doing this , the big brands will sell massively discounted multipacks to the big retailers and make it impossible for them to compete without doing things like this, the margins aren't great on lots of items

MarkY91 · 19-02-2019 12:23pm

Outkast_IRE wrote: »

I don't blame them for doing this , the big brands will sell massively discounted multipacks to the big retailers and make it impossible for them to compete without doing things like this, the margins aren't great on lots of items

Yeah I know what you mean but it's just a little odd when you can clearly see on the can of coke that it's part of a multi pack and they clearly know what they're doing. I don't mind, it's just an observation. What annoys me is their ridiculous 50c charges.
I noticed they charge it to smaller phone top up amounts but not for the €20 top up.

drunkmonkey · 19-02-2019 12:31pm

The top up is a different story, the retailers are charged more than the face value or the smaller top ups. By right the 50cent charge on €5 shouldn't be allowed but payzone advised retailers to up their price on the smaller top up. It should be a €5.50 top up.

Carawaystick · 25-02-2019 11:28pm

L1011 wrote: »

This is not illegal nor is there anything wrong with the products.

Usually multipack products have the legally required packaging information(ingredients, allergen info, nutritional info etc) on the outside packaging not on the individual items, so it might not be legal

GM228 · 26-02-2019 12:14am

Carawaystick wrote: »

Usually multipack products have the legally required packaging information(ingredients, allergen info, nutritional info etc) on the outside packaging not on the individual items, so it might not be legal

+1, and also often the use by or best before date.

Extra charge for debt card payments legality in shop?

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