Minimum card spend


#41

1.75% is 17.5 pence on a £10 transaction? Fully understand why a low margin business might not want to accept cards and take cash only. That has its costs too of course.


#42

The shop buys a back of chewing gum for 45p they sell it for 75p. Someone pays with card, they pay 20p, then 1.2%., then end up with 54p. A 9p margin out of which the running costs, staffing costs, rates etc must be paid. If you paid with cash they’d have 30p. So card as opposed to cash represents a 70% reduction in margin on that small transaction. No wonder they have a minimum purchase amount
Banks like you using card because they make money out of them
They do also charge for banking cash but it’s around 65p per £100 so about 0.5p on the chewing gum. Presuming the shopkeeper isn’t savvy enough to use his cash at the wholesaler rather than banking it.


#43

No business needs to pay a 20p flat rate plus percentage these days.


#44

That right you can pay a smaller fee and a monthly sunscription. Works out better for high volume I agree


#45

No monthly subscription with iZettle.


#46

Just a 1.75% fee that soon adds up on large transactions.


#47

Surprised any business takes cards.


(Jamie Mill) #48

They most likely don’t declare all their cash payments


(Kolok) #49

I work in a cash heavy business, all transactions go through the ePos so they have to report it

Employees get paid in cash to get rid of alot of it , and all suppliers are paid in cash on delivery where possible.


#50

Doesn’t that piss them off? I’m assuming they get a choice in that…?


(Kolok) #51

No choice, and we get paid weekly.

Decent pay and conditions ,can’t really complain.


#52

And yet all articles presented thus far including the one you linked to and the one from the BBC agree such minimum spend requirements are allowed and none says they arent


#53

Once more and for the last time. The BBC article says a minimum charge is not illegal. This is very true. It is not a criminal offence to do so, there is no law against it. It’s a breach of the contrract with Mastercard and Visa.

There is a big diffence between “illegal” and “allowed”. If you can’t see that there is no way I’ll convince you.
I’m out.


(Dan) #55

Those who impose a minimum payment lose my business entirely. I hate being inconvenienced and being forced to spend more/use cash.


#56

I’m guessing they’re not fussed as they would have made a loss on your sale


(Dan) #57

So pass on the charge to me! I don’t care! What is it anyway? 2%?


#58

It’s illegal for them to do that


(Dan) #59

If that’s the case then therein lies the problem. Change the law. I highly doubt businesses will make a loss on transactions under the minimum amount if they haven’t already marked up their prices.


#60

Ignoring the legal side of it for a moment, it’s a hard balancing act. On one hand merchants want to offer as many payment options as reasonably possible and costumers want to pay using their preferred method. On the other hand merchants have to take losses with some transactions using some of the payment methods, with the option being to impose the minimums or not offer that payment method at all.

I find that a reasonable middle ground is for payment methods that at least half the merchants don’t accept to begin with (AMEX), a merchant accept it but impose a minimum limit. The alternative is to not accept it at all in most situations.

As for minimum limits for Visa/MC which are cheaper and widely accepted, I believe its reasonable to include that expected cost with acceptance in the prices of the merchandise to begin with.


(Jonathon) #61

Could just up all prices by whatever the % cost and offer the same % discount for all paying by cash.

Or just up the prices and those who pay cash you retain more of their money :man_shrugging:t2:

At least then I can spend whatever I like.