The most recent changes to credit and debit card surcharges… and what they mean for our customers
The credit card surcharge is the scourge of many shoppers; having spent a little while browsing and adding to their baskets, consumers are often brought down to earth with a ‘thud’ when they realise they’re being charged 2% extra, and beyond simply for using their card to make a payment. How many times have you bought gig or concert tickets, only to discover there’s an additional amount, per ticket, to be paid before they’re yours? Have you ever found yourself purchasing additional items that you just don’t need, simply to avoid a paying penalty on an amount less than £5 or £10?
On 13th January 2018 all of that changed…
On 19th July 2017 the government laid down its plans to enforce the Payment Services Regulations Act 2017, or PSR Act. This amendment to the Consumer Rights Regulations of 2012 means that all online and bricks and mortar retailers will be banned from charging customers to use their debit or credit card, or PayPal and Apple Pay from 13th January 2018. Current legislation, which was introduced in 2013, allows retailers and companies to charge consumers the amount it costs them to process card payments and transactions; from January this practice will no longer be enforced. Indeed, ALL card surcharges will be prohibited across the UK, and many European companies too.
So, what does this mean?
This news is likely to be welcomed by consumers, who are no doubt fed up of paying additional charges on top of the fees for their goods. Do you remember those concert tickets? You’ll finally be able to purchase seats for concerts and special events without having to worrying about administration costs pushing prices even higher. However, Gary Anker, managing editor of Money Saving Expert has a warning: “While [this new legislation] will make it easier for consumers to compare prices, we expect some companies will raise prices for all to compensate for the loss.” This means that those habitually paying by cash or debit card could be expected to pay more to cover the shortfall that companies will be expecting. Okay, so this situation isn’t quite a win-win scenario, but consumers will soon be able to shop with complete transparency. That’s got to be worth something, surely?
If any of this news relates to you it’s essential you take steps to ensure you’re complying with these amendments to consumer law. You must not charge your customers for using your services, whether they’re paying by card, PayPal, or Apple Pay. Those not complying with the law could face hefty fines further down the line; is it really worth the risk?
You can find out more about the ban on credit and debit card surcharges here. In the meantime, be reassured that you can try Lanonyx’s call recording and logging software for free to begin with; there’ll be no parting with cash until you’re completely happy with the service you’re receiving. Find out more by dropping us a line.