Why would a retailer charge 50cent on contactless transactions?

Phibsboro7

The new contactless system is marketed for small transactions such as cups of coffee etc. It is said that it's cheaper and easier than cash for both the customer and the retailer.

Yet the SPAR shop in O'Connell street, Dublin want to charge 50cent per contactless transaction. Is this allowed? Strangley, I thought the merchant banks and/or credit card companies had abolished this when they announced the cheaper charges last year? Though I could be wrong.

I work for a charity and the bank charges we have for online credit cards are WAY cheaper than banking cash. That is before taking into account how much safer are staff and volunteers are when they don't handle cash and of course the risk of theft/mishandling from the staff/volunteers themselves.

The only reason I know to prefer cash is for tax fraud purposes. All your transactions are traceable when it is online.

Am I missing something?

theValheru853

Probably using it as a way to pass the bank charges on to the customer.

Bandara

Because they are complete idiots who do not understand the business

StupidLikeAFox

Well it's o oconnell street so the correct answer is probably because they can

Delacent

Phibsboro7 wrote: »

The only reason I know to prefer cash is for tax fraud purposes. All your transactions are traceable when it is online.

Am I missing something?

<snip>
Mod: Dont drop in here and make comments like that

JoeyPeeps

It's fair enough. Some debit card machines charge up to 2.75%. They are making a loss when their business is making profits.

Delacent

Delacent wrote: »

<snip>
Mod: Dont drop in here and make comments like that

So the business Forum has no issue with an anonymous poster suggesting that a convenience store retailer is running a tax avoidance scheme by accepting cash in preference to cards.?

WOW!

No wonder the forum is so crap these days.

TheChizler

If they're with AIB or BOI Merchant Services I'd report them in the Talk To forum, and to the IPSO. Totally goes against all payment provider agreements.

_Brian

Banks plan to bring on charges on contactless anyway. Feckin scam.

TheChizler

_Brian wrote: »

Banks plan to bring on charges on contactless anyway. Feckin scam.

No more so than on current charges.

Axwell

Delacent wrote: »

So the business Forum has no issue with an anonymous poster suggesting that a convenience store retailer is running a tax avoidance scheme by accepting cash in preference to cards.?

WOW!

No wonder the forum is so crap these days.

If you wanted to question that in a civil manner you should have done so. Instead you decided to act like a 10 year old and make personal comments, its unhelpful and pointless comments like that which drag forums in a bad direction. As someone who rarely posts in here you are just as anonymous as him when it comes to it also.

newacc2015

AFAIK it is against the terms of the retailer/merchant contract to charge for contactless

The charge for cards is 0.1% by most merchant banks

OP I would ask for their merchant bank and report them for violating the terms of their contract. I would say you could actually phone the Spar Group for Ireland and tell them about it too. There is probably rules from HQ on this

pilly

By charging 50c they're actually making money on each transaction. Presumably that's why they're doing it. Only way around it is to shop elsewhere.

AlekSmart

_Brian wrote: »

Banks plan to bring on charges on contactless anyway. Feckin scam.

Visitors to the UK,who use Public Transport will be seeing a big push to transfer all Bus & Rail fare payments to contactless.

TfL (Transport for London) London,for example,has decided,to end development of it's long standing Oyster Card,and instead migrate all of it's Fare Payments to Contactless Bank card over the mid term future.

Now,for me,the question of just how long the retail Banks will be so munificent about their contactless harging regime is of huge importance.

I would prefer if some legislative process was in place,limiting the future actions of Banks in relation to widespread contactless transactions.

TfL themselves appear quite happy that the UK banks will contine to smile benignly on their contactless customers,a situation I would prefer to see legislated for Before and widespread future expansion of Contactless Payment for small amounts.

Impetus

Bandara wrote: »

Because they are complete idiots who do not understand the business

Because they understand how dumb the typical Irish customer is, and know that they can get away with it 95% of the time.

I know of no motorway toll booth that takes contact less card payment. I have come across one that will surcharge you if you pay by debit card, but will not if you use a credit card.

There is something rotten about debit card bank charges in Ireland, among other things.

It would be a simple matter to use contact less when entering and exiting a car park - replacing the need to pay at a cash machine or waste time inserting a card etc at the barrier. There is even a market for pre-paid contact less cards which one could store a small amount of money, and use it solely for contact less. No more risky than a similar sum held in cash in a wallet.

irishgeo

in breach of mastercard rules and im pretty sure visa as well.

https://www.mastercard.com/ca/merchant/en/getstarted/BM_Manual.pdf

5.11.2 Charges to Cardholders
A Merchant must not directly or indirectly require any Cardholder to pay a surcharge or any
part of any Merchant discount or any contemporaneous finance charge in connection with a
Transaction. A Merchant may provide a discount to its customers for cash payments. A
Merchant is permitted to charge a fee (such as a bona fide commission, postage, expedited
service or convenience fees, and the like) if the fee is imposed on all like transactions
regardless of the form of payment used, or as the Corporation has expressly permitted in
writing.
For purposes of this Rule:
1. A surcharge is any fee charged in connection with a Transaction that is not charged if
another payment method is used.
2. The Merchant discount fee is any fee a Merchant pays to an Acquirer so that the Acquirer
will acquire the Transactions of the Merchant.

pilly

irishgeo wrote: »

in breach of mastercard rules and im pretty sure visa as well.

https://www.mastercard.com/ca/merchant/en/getstarted/BM_Manual.pdf

How do Ryanair and the likes get away with it so?

irishgeo

pilly wrote: »

How do Ryanair and the likes get away with it so?

No one seems to enforce the rule.

TheChizler

pilly wrote: »

How do Ryanair and the likes get away with it so?

They only use card payments, so technically they apply it regardless of payment type.

pilly

TheChizler wrote: »

They only use card payments, so technically they apply it regardless of payment type.

No, if you use a certain type of debit card they don't charge. Can't remember which one now.

Gloomtastic!

pilly wrote: »

No, if you use a certain type of debit card they don't charge. Can't remember which one now.

That'll be the Ryanair Credit Card.....:rolleyes:

pilly

Gloomtastic! wrote: »

That'll be the Ryanair Credit Card.....:rolleyes:

I said debit card, no need for your rolly eyes. I think it's a prepaid master-card.

Anyway, my point being that they don't charge the fee to everyone so it's not universal.

Gloomtastic!

pilly wrote: »

I said debit card, no need for your rolly eyes. I think it's a prepaid master-card.

Anyway, my point being that they don't charge the fee to everyone so it's not universal.

The eyes were for Ryanair not you! :eek:

pilly

Gloomtastic! wrote: »

The eyes were for Ryanair not you! :eek:

Oh right, sorry.

pilly

Gloomtastic! wrote: »

The eyes were for Ryanair not you! :eek:

A way around it is to use the prepaid mastercard though. Just to get one up on them!