Merchant charging 10% fee for cash back

gerryg80 · 21-09-2021 9:57pm #1

Folks,

Just wondering if anyone has come across this before. I was a wedding at the weekend, and needed to get "cashback" from the bar so that I had some money to pay for a taxi. Anyway the bar man advised that there was a 10% fee of the value of amount i was requesting. This seems very strange and is something i haven't ever come across before. So anyway after some protest i agreed (which im still regretting 😩). So ive been thinking about this since & this feels illegal since there is no charge on the merchant to give the customer cashback. Im going to go back to the hotel and complain anyway (prob through twitter), but was wondering if there was anything official on this anywhere that somebody could point me towards.

Atlantic Dawn · 21-09-2021 10:07pm

Did you get a receipt showing the charge or was it down as just the amount requested plus the 10% bundled as one normal transaction. So for example you wanted €100 cashback but the receipt and payment amount shows you wanted and were given was €110 with the hotel/staff member pocketing the €10.

Darc19 · 21-09-2021 10:18pm

It is prohibited by law to make a surcharge for a card payment. However, I'm not certain whether this also applies to cashback, so I'd thread carefully on accusing the place of doing anything illegal.

It is possible that the barman was adding his own charge.

Also, did you use a debit card or ask them to put a credit cad charge through and give you cash in exchange?

gerryg80 · 21-09-2021 10:29pm

https://www.boards.ie/discussion/comment/117921782#Comment_117921782

Ya i didn't request a receipt unfortunately. Drinks were say 10.50 and i requested 50 euro cash back. Total charge was then 65.50 on my card was then (10.50 + 55).

https://www.boards.ie/discussion/comment/117921813#Comment_117921813

I used my debit card. Bar man made it explicitly clear, that it was "not going into his pocket" and was the policy of the establishment.

Atlantic Dawn · 21-09-2021 10:44pm

I'd contact hotel first to see what is there take on it, tell them the time it occured to see what they come back with first. Seems dodgy from a Revenue point of view too, undeclared income being syphoned off.

POBox19 · 21-09-2021 10:49pm

Not right. Contact your bank ASAP and the Central Bank too. You have rights and were just robbed of them.

L1011 · 21-09-2021 10:50pm

https://www.boards.ie/discussion/comment/117921902#Comment_117921902

No "naming and shaming" on here, this isn't Liveline with RTEs defamation lawyers should something be wrong.

Darc19 · 22-09-2021 10:59pm

https://www.boards.ie/discussion/comment/117921902#Comment_117921902

The central bank?

Since when did they regulate the hospitality industry?

That's one of the most ridiculous comments here for a long time.

mondeoman72 · 23-09-2021 12:47pm

While you should not be charged for using the card, I wonder were you charged for the "service" of the cashback.

Jim_Hodge · 23-09-2021 1:29pm

https://www.boards.ie/discussion/comment/117921902#Comment_117921902

Just as well they weren't named, with you accusing them of theft. The central bank has nothing to do with this.

23-09-2021 2:19pm

Can't see a problem with a company charging for a 'service' - they have to pay for the equipment and probably a handling charge in any case.

"You have rights and were just robbed of them" - You also have the right to trudge out of the building, down the street, find an ATM and get the cash for free. Is it raining outside? Your call.

My opinion only.

The J Stands for Jay · 23-09-2021 2:25pm

https://www.boards.ie/discussion/comment/117929082#Comment_117929082

The hotel just saved the bank handling costs on €50 in cash. Probably saved more than the cost of the card transaction. Charging a fiver is having a laugh.

Alun · 23-09-2021 4:21pm

https://www.boards.ie/discussion/comment/117929130#Comment_117929130

Exactly. I always thought that one of the reasons retailers offered cashback in the first place was to a) reduce the amount of cash they have on the premises in case of theft and b) banks now charge them to lodge cash, so you're saving them money by doing it as well.

jahalpin · 23-09-2021 10:43pm

https://www.boards.ie/discussion/comment/117926896#Comment_117926896

Anything to do with using an electronic payment method is a financial transaction and is regulated by the financial regulator. The hotel would have an agreement with the merchant service provider and Visa/Mastercard do not allow them to charge extra for using cards

Darc19 · 26-09-2021 4:22pm

https://www.boards.ie/discussion/comment/117931108#Comment_117931108

and I state clearly that it is prohibited by law (not just regulation) to charge an additional fee for a card transaction for a purchase.

However, it is not clear whether that includes cashback which is not considered a purchase.

Contacting the central bank is so over the top for this issue that is is simply ridiculous.

Shelflife · 29-09-2021 3:39pm

If the barman made it clear that there was a charge for the cashback facility before the transaction and you agreed with it then there is no issue.

It may well be against the T&Cs of the terminal provider but that's between the bar and them.

I don't agree with the practice and think its short-sighted on the bars behalf but maybe they have their reasons as they may not have a lot of cash transactions and as a result don't keep a large float on hand.

Jim_Hodge · 29-09-2021 6:34pm

Any update from the OP after contacting the hotel?

Merchant charging 10% fee for cash back

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