Charge for debit card not scanning

Duffryman

Was in a local shop yesterday buying approx €20 of groceries and went to pay by Visa Debit card. The machine couldn't read the card properly (in fairness, chip on it has been looking damaged for a while and so it had to give out sometime).

The checkout operator said she could enter the card number by hand but there would be a €2 charge to do so, and pointed towards a notice behind the counter that announced this charge.

I'd never heard of such a thing before and I wonder is there any possible reason for imposing such a charge other than pure and simple meanness? (owners of this shop would have a reputation locally for being 'mean'.)

Speedwell

It is not unusual for a retailer to be charged more for manually keying a transaction than swiping or chip reading. https://www.elavon.ie/welcome/Card-Payment-Basics/Interchange It would be out of whack for the charge per transaction to be 2 EUR, though.

I wonder if the charge isn't related to the possibility that a card that has to be manually keyed is stolen or counterfeit. Is it the kind of shop that might be subject to that kind of fraud a lot?

I'm not defending the charge by any means; in either case it is passing a cost of doing business onto the customer, and most places don't. I wouldn't be surprised if it is a sneaky way for them to claw back some of the money they might lose by stopping a minimum-transaction policy (i.e. requiring cash if transaction is under 5 EUR) in light of calls to abolish such policies http://www.thejournal.ie/atm-transaction-charge-debit-card-fees-2385818-Oct2015/

Kristopherus

I'll bet the shop assistant won't get an additional €2 in her next pay packet !!!!

Duffryman

I'd have the same bet

Seems odd to me that a shop would face different charges depending on how a card was processed, but then again, what do I know...

It's an ordinary corner shop like a Mace/Centra/Londis/etc., in a large village/small town that doesn't have any particularly unruly element or 'community of a certain culture' (if you know what I mean). So no reason to believe it gets a lot of stolen cards or anything, but again, what do I know, and at least the idea of protecting against such cases is a decent theory.

€2 still seems a lot, though!

Speedwell

Something else occurred to me. I am an immigrant from America and I maintain an American bank account with a low balance for the few things I need to still pay with dollars (government fees and the like). I occasionally use the debit card associated with the account for a loaf of bread or something just to keep it active (five transactions a month stops a fee from being charged on the account). That card always has to be manually keyed for some reason (it has no chip, like most American bank cards, but it does have a swipeable strip, so your guess is as good as mine). I am pretty sure that retailers are charged extra to process an "international" transaction, just like I have to pay a small percentage fee on each non-dollar transaction using that card.

Do you think maybe the 2 EUR charge on all manual-keyed transactions is an effort to recoup that fee, while imposing it on everyone to avoid the appearance of discrimination against tourists and immigrants?

Duffryman

It's another valid theory, but this is not really a tourist town, so I can't see it being a major factor for them.

My own theory right now is that a small charge may be justified, but setting the charge at €2 is down to the meanness that the owners are known for

Speedwell

Duffryman wrote: »

It's another valid theory, but this is not really a tourist town, so I can't see it being a major factor for them.

My own theory right now is that a small charge may be justified, but setting the charge at €2 is down to the meanness that the owners are known for

For sure. I'll have to check next time I go for milk to see whether we live in the same town, heh. Same tight-fisted owner reputation at the shop in the town square here.

VincePP

there's no additional charge for manual entry - some place are not set up for "Cardholder not present" transactions, but that is nothing to do with having to key in a card with cardholder there to enter pin number

there's no additional charge for USA card or cards without a chip (such as some gift cards)

charging a fee more than the costs associated with the transacton is now illegal (hence the ryanair €5 charge is gone)

Either the store does not understand the difference between Cardholder not present and manually keying in a card, or they are telling people who's cards can't be read to eff off.

kbell

Any chance the store owner is dong this on purpose?
10/ 20 of these "failed" transactions a day yields a tidy profit.
If he's as miserable as you say op, I wouldn't be surprised.

VincePP

kbell wrote: »

Any chance the store owner is dong this on purpose?
10/ 20 of these "failed" transactions a day yields a tidy profit.
If he's as miserable as you say op, I wouldn't be surprised.

You may get one a week in a busy store, so i reckon its just ignorance of the charges

LeinsterDub

Maybe there is someone who is refusing to contact their bank and have their card reissued. The owner has become annoyed keying in their card everytime and this charge is a way of encouraging them?

Duffryman

That's a good theory too. But knowing this particular place, I still say meanness.

BeardySi

Well you've always got the option to walk away. I know I'd do exactly that.

Graham

I understand the liability for fraudulent transaction shifts to the retailer if chip and pin isn't used. A €2 charge is a good way to incentivise use of chip and pin.

Duffryman

Yeah, but this charge would be for people already using chip and pin, but who's chip isn't working for whatever reason. Like mine, where it must have just worn down over the couple of years I had the card.

A new card has since arrived from the bank anyway so at least I don't have that trouble any more....

ohnonotgmail

Duffryman wrote: »

Yeah, but this charge would be for people already using chip and pin, but who's chip isn't working for whatever reason. Like mine, where it must have just worn down over the couple of years I had the card.

A new card has since arrived from the bank anyway so at least I don't have that trouble any more....

so the charge is for people with a chip and pin card who dont use chip and pin? As another poster said this shifts liability on to the retailer so a charge is probably understandable.