Shops charging minimum charge for debit or credit cards

Amy2010

Shops and coffee shops are charging minimum charge for debit or credit cards. It is a blatant rip off? Even a new coffee shop 3fe near Grand Canal Street are on a hop and charge Eur5 min even for a cup of coffee unless I buy their stuff? No cash back for the value of Eur5? I hear more and more shops are doing the same. No wonder, I'm peeved and I don't always have cash on person. It is a bit much. What is your take?

hfallada

All businesses have to pay a merchant bank fee. Usually about 1,75%-2.5% for visa debit and about 3-4% for a visa credit card. Plus they have to pay monthly fees on the machine. It all adds up.

A transaction using cards in a pain. It takes about twice as long to do as a cash purchase. I don't like using cash either. But in the CC with a ATM nearly every 100 mins, you can't complain that it's not convient to find cash

B0X

Depending on who's processing the transactions, the credit card company will take up to 2.9% of the cost of the transaction plus 30c. On a €2 coffee that's 18% of total being taken.

Not that I agree with charging a minimum of €5 though, that's pretty poor form.

allthedoyles

I take my business elsewhere -- often had to walk out of shops empty-handed after realising its minimum €10 .

Of course the shopkeeper has bank fees for transactions , but so have us consumers .

So whats good for the goose , should be good for the gander.

drunkmonkey

Retailers are getting the piss taken out of them with charges, withdraw money from the bank, don't expect retailers to be giving you €5 cash back, once maybe but any more than that and your taking the preverbal. It's costing the retailer too much money.

Amy2010

allthedoyles wrote: »

I take my business elsewhere -- often had to walk out of shops empty-handed after realising its minimum €10 .

Of course the shopkeeper has bank fees for transactions , but so have us consumers .

So whats good for the goose , should be good for the gander.

Yeah, I agree from consumer point of view. I've limits too on how much I spend per day or week. I won't be forced to spend more than necessary. I bought a bag of king crisp not because I wanted it. I was caught on a hop when buying a lunch in a nearest shop. The next nearest shop is about 20mins walk away.

sarumite

Amy2010 wrote: »

Yeah, I agree from consumer point of view. I've limits too on how much I spend per day or week. I won't be forced to spend more than necessary. I bought a bag of king crisp not because I wanted it. I was caught on a hop when buying a lunch in a nearest shop. The next nearest shop is about 20mins walk away.

It could of been worse. King are a fine packet of crisps. Nothing wrong with them at all.

ardmacha

A customer can withdraw €150 from a bank machine for the same fee as €20. So they can make many small payments for one single transaction fee. It is unreasonable to go around paying single digit amounts with a card given the cost to the shop. If shops allow this then the rest of us that are more reasonable will have to pay those charges.

Amy2010

sarumite wrote: »

It could of been worse. King are a fine packet of crisps. Nothing wrong with them at all.

Its lovely crisp but at a price a whopping Eur1. I need to watch my spare tyres thou.

worded

Just pay cash for a coffee. The queue behind you will appreciate it.

Amy2010

ardmacha wrote: »

A customer can withdraw €150 from a bank machine for the same fee as €20. So they can make many small payments for one single transaction fee. It is unreasonable to go around paying single digit amounts with a card given the cost to the shop. If shops allow this then the rest of us that are more reasonable will have to pay those charges.

I think it is unreasonable to be paying a min charge when monies are so tight.

Amy2010

worded wrote: »

Just pay cash for a coffee. The queue behind you will appreciate it.

Agree. It make sense all around, when I find myself 20 cents short...that when all hooha comes in. I've a choice of walking away or use my debit card?

MagicMarker

ardmacha wrote: »

A customer can withdraw €150 from a bank machine for the same fee as €20. So they can make many small payments for one single transaction fee. It is unreasonable to go around paying single digit amounts with a card given the cost to the shop. If shops allow this then the rest of us that are more reasonable will have to pay those charges.

I'm unreasonable for wanting to use my debit card for my purchases? If shops have to pay fees then that's their problem, not mine. A coffee shop near me recently brought in a min charge for debit cards, so I stopped going there and instead go to another place 50 yards up the street. So because the shop wanted to save literally a couple of pennies on my purchase they've now lost all the profit from me, a former regular customer.

Cookie_Monster

There's no excuse for the banks to be charging shops so much for the electronic transactions in the first place, that's where the problem is.

We've EFTPOS over here in New Zealand (Electronic funds transfer, point of sale). Fees are 1-1.5% to merchants, everyone uses it, even for $2-3 dollar transactions. It's a brilliant system, cheap for everyone, quick and negates the need to ever carry cash. Even beach side coffee carts have it

Amy2010

MagicMarker wrote: »

I'm unreasonable for wanting to use my debit card for my purchases? If shops have to pay fees then that's their problem, not mine. A coffee shop near me recently brought in a min charge for debit cards, so I stopped going there and instead go to another place 50 yards up the street. So because the shop wanted to save literally a couple of pennies on my purchase they've now lost all the profit from me, a former regular customer.

I agree...it is the same for me. It is a pity for that particular coffee shop I like that I no longer can run in and grab a nice coffee...it is my small luxury.

Amy2010

Cookie_Monster wrote: »

There's no excuse for the banks to be charging shops so much for the electronic transactions in the first place, that's where the problem is.

We've EFTPOS over here in New Zealand (Electronic funds transfer, point of sale). Fees are 1-1.5% to merchants, everyone uses it, even for $2-3 dollar transactions. It's a brilliant system, cheap for everyone, quick and negates the need to ever carry cash. Even beach side coffee carts have it

Hear hear...

Cookie_Monster

Visa debit is also possibly the worst thing to happen in Ireland in a while in regards to this. I was still working for a big user of cards when it started to be launched by AIB and the fees for it were much much higher than laser, both from Visa and on from the banks as well.

hardCopy

ardmacha wrote: »

A customer can withdraw €150 from a bank machine for the same fee as €20. So they can make many small payments for one single transaction fee. It is unreasonable to go around paying single digit amounts with a card given the cost to the shop. If shops allow this then the rest of us that are more reasonable will have to pay those charges.

There is nothing at all unreasonable about expecting to use electronic payments for all transactions in a first world country, actually electronic payment is massively popular even in developing Africa.

The fees charged to shops are unreasonable, but they're probably being charged higher rates by the bank for buying change and lodging cash anyway.

If the government want people to join the 2000s and switch to electronic payments they need to scrap or cap the transaction fees charged. They also need to get rid of the ridiculous stamp duty on cards.

Amy2010

Cookie_Monster wrote: »

Visa debit is also possibly the worst thing to happen in Ireland in a while in regards to this. I was still working for a big user of cards when it started to be launched by AIB and the fees for it were much much higher than laser, both from Visa and on from the banks as well.

Yeah, its all about a profit to a bank?

creedp

hardCopy wrote: »

There is nothing at all unreasonable about expecting to use electronic payments for all transactions in a first world country, actually electronic payment is massively popular even in developing Africa.

The fees charged to shops are unreasonable, but they're probably being charged higher rates by the bank for buying change and lodging cash anyway.

If the government want people to join the 2000s and switch to electronic payments they need to scrap or cap the transaction fees charged. They also need to get rid of the ridiculous stamp duty on cards.

Having said that I know people who won't use a credit card becasue they 'wouldn't trust themselves to manage within their resources'. Cash is safer as can't be overspent! Some Irish people have a way to go yet before they mature sufficiently to trust the plastic over cash.

hardCopy

creedp wrote: »

Having said that I know people who won't use a credit card becasue they 'wouldn't trust themselves to manage within their resources'. Cash is safer as can't be overspent! Some Irish people have a way to go yet before they mature sufficiently to trust the plastic over cash.

I know people who are the same. They still overspend by going to ATMs or borrowing from everyone around them. Judging by all the ads for payday loans on UK TV it's not just an Irish problem.

ardmacha

I'm unreasonable for wanting to use my debit card for my purchases? If shops have to pay fees then that's their problem, not mine.

If the shop allows you do it, then it is all of our problem as it drives up the cost of coffee.

Amy2010

creedp wrote: »

Having said that I know people who won't use a credit card becasue they 'wouldn't trust themselves to manage within their resources'. Cash is safer as can't be overspent! Some Irish people have a way to go yet before they mature sufficiently to trust the plastic over cash.

We've to get cash somewhere. I'm sure majority uses ATM to get cash and it is not for free unless you've a min amount in your bank account.

longhalloween

But if we're to move to a cashless society then something will have to be changed.

creedp

Amy2010 wrote: »

We've to get cash somewhere. I'm sure majority uses ATM to get cash and it is not for free unless you've a min amount in your bank account.

The point I was making was that removing charges/duties on credit cards won't necessarily encourage some people to use them until they get over their fear of the demon plastic forcing them to overspend on nice goodies. Personally I use the credit card for almost all purchases .. regularly having to go to the ATM is a pain I don't miss.

Amy2010

creedp wrote: »

The point I was making was that removing charges/duties on credit cards won't necessarily encourage some people to use them until they get over their fear of the demon plastic forcing them to overspend on nice goodies. Personally I use the credit card for almost all purchases .. regularly having to go to the ATM is a pain I don't miss.

I use my debit or credit card for almost all purchases so I can account for what I spent and therefore, able to budget better. I've no problem on curbing my fears to overspend on nice goodies. I got over that years ago.

K-9

Amy2010 wrote: »

Shops and coffee shops are charging minimum charge for debit or credit cards. It is a blatant rip off? Even a new coffee shop 3fe near Grand Canal Street are on a hop and charge Eur5 min even for a cup of coffee unless I buy their stuff? No cash back for the value of Eur5? I hear more and more shops are doing the same. No wonder, I'm peeved and I don't always have cash on person. It is a bit much. What is your take?

Mod:
Thread is more suited to Consumer Issues - boards.ie.

rubadub

allthedoyles wrote: »

I take my business elsewhere -- often had to walk out of shops empty-handed after realising its minimum €10

I often walk out of shops with NO minimum charge, as they should be typically more expensive. To work on the same margins as the shop next door (with charges) they obviously have to increase all prices accordingly across the board to cover the charges. So if I am paying cash in effect subsiding the card users.

According a previous poster a €2.50 coffee could be up to 37cent extra in fees. I wonder if the OP would just prefer to pay that extra, or do they expect cash payers to subsidise the difference.

There could be a different marketing strategy to doing it. Like charge €2.87 across the board, and give the cash payers a "free" biscuit or something.

former legend

Amy2010 wrote: »

I agree...it is the same for me. It is a pity for that particular coffee shop I like that I no longer can run in and grab a nice coffee...it is my small luxury.

But... you know their policy, you now understand the logic behind it, so could you not just keep a couple of euro in change in your handbag and still have your coffee?

foggy_lad

Amy2010 wrote: »

Shops and coffee shops are charging minimum charge for debit or credit cards. It is a blatant rip off? Even a new coffee shop 3fe near Grand Canal Street are on a hop and charge Eur5 min even for a cup of coffee unless I buy their stuff? No cash back for the value of Eur5? I hear more and more shops are doing the same. No wonder, I'm peeved and I don't always have cash on person. It is a bit much. What is your take?

I have never paid extra for mobile top ups and thos would be the same. I will vote with my feet if any shopkeeper or business tries this with me.

If shops and business don't like paying a small amount to get us in the door they should just close the doors.

dudara

TO be fair on retailers, the fees that the card processors handle can be high. And when you think about it, most consumers are paying fees as well on the debit card transactions. So we're getting caught from both sides.