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sageform
13 Jan 18 18:45
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Date Joined: 15 Jun 01
| Topic/replies: 11,749 | Blogger: sageform's blog
As usual, the Government have fallen for pressure from multinationals regarding credit card payments. Banks put very high charges on small business for using card payments so the only recourse is to pass that on but now that is illegal. So the usual "lets get the government to impose rules to break small businesses" works again.
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Report salmon spray January 13, 2018 6:58 PM GMT
The banks used to be allowed to do this until 20 or 30 years ago. I think a lot of small businesses at that time didn't accept credit cards as a result.
Report sageform January 13, 2018 7:29 PM GMT
My own very small business is self catering cottages so we have about 40 customers per year. My bank wanted a fixed monthly charge plus a percentage of every card payment to accept cards so we only accept cash, cheques (£5 per month to have a business account and then 80 pence per cheque to pay in) or bank transfer which is still free if you have a business account and pay the £5/month. We have never taken card payments but the last time I worked it out it would have cost us about 8% of our turnover and 12% of profit. No wonder banks and large businesses that only pay about 1% are in favour of the change.
Report salmon spray January 13, 2018 8:29 PM GMT
I always pay small hotels/guest houses by debit card. I've always assumed the charges on those weren't so high. I've also always assumed a lot of places will no longer take cheques because they're no longer backed by a guarantee card.
Report sageform January 14, 2018 6:29 AM GMT
We ask for payment 2 weeks before arrival and very few customers even mention it. We have been in this business for 18 years and have no regrets about not using cards.
Report salmon spray January 14, 2018 10:42 AM GMT
Is this legislation saying the cost cannot be passed on or is it allowing the banks to insist it isn't ( that used to be the position decades ago if I remember correctly )? If it's the former then the it is poor law imo as it should also standardise bank charges to businesses.
Your strategy seems very sensible but the catch might be that a lot of people no longer have chequebooks. I have because,for complicated reasons,I have to pay my TV Licence by cheque but I am fairly certain I have only written that one cheque a year since 2013/14.
Report bongo January 14, 2018 2:53 PM GMT
The legislation is saying a business cannot charge extra to the customer for paying by CC. So the business is faced with either
- spreading the cost of the charges among the customers who pay by other methods ( so higher prices )
- not accepting CCs

It's an EU directive. But we could have fought it.
Report dave1357 January 14, 2018 3:32 PM GMT
Cash costs money to bank and increases risk of robbery with danger to staff and subsequently raises insurance.  Obviously card payers subsidise these costs. 

If businesses are charged more for accepting credit cards then they simply tell the payment provider to reduce the charge or they won't accept them.  Market forces will ultimately lead to lower charges.
Report sageform January 15, 2018 8:26 AM GMT
Salmon, we have a lot of repeat customers, many are retirees, and many don't even have a computer so a cheque is still their normal way to pay for anything. I try to encourage online payments and many people are happy with that and it is quick and cost free from my point of view so worth about 8% more than a card payment would be. A few people pay cash but the amounts mean that we use it for our own spending so hardly ever bank any. And yes I do include it in my accounts. Accommodation providers are probably the only part of the economy that get paid up front.
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