Minimum card spend


#62

How you that exactly work out? The problem that leads to the existance of minimum payments is the fixed component of the fee. Would the merchant set prices assuming each product will be bought on its own, thus bumping everything by 20 to 30p? That just wouldn’t make any sense :thinking:


(Jonathon) #63

I’m talking about small shops. Increasing all prices slightly would mean that they at least reduce the cost of accepting card.

It would work fine. It’s not ideal, but it’s at least an idea.


#64

A bad one. Stuff is expensive enough already


(Nick) #65

The problem for small shops is, increasing all prices slightly could just as well mean everyone decides to go to Tesco/Sainsburys/Asda instead.


(Ben ) #66

But ultimately that’s the job of the shop / business right? To price their goods in a way that captures all of the costs and provides revenue to the business.

In my view I don’t think the argument is acceptable any more that a business “loses money” on card transactions. They factor in all the other sunk costs of a business into the pricing of goods - so I don’t see why paying on a card should be different.

Handling cash also has fees linked to it - maybe not direct and obvious like a flat fee on a card - but both options have costs which should be accounted for!


(Jonathon) #67

Seems like that’s happening already :man_shrugging:t2:

I’m not saying I like it, but if people here are saying “I’ll pay the 1% (or whatever) so that there’s no minimum then this allows you to.


(Jonathon) #68

Care to explain your idea then?

And it can’t just be “there should be no minimum” - that’s the default (and also what I think) position.

I’m talking about a way to prevent smaller shops from potentially losing money on smaller transactions (there was an example above somewhere that was good at showing this in action)


(Jonathon) #69

Quite. Which is why I was suggesting the additional cost of cards should be built into pricing, much like staff costs, rent etc are.


(Simon) #70

Some might also not want the record of the sale and cash going into their bank as either they are being a bit dodgy :roll_eyes:


(Sacha Zarb) #71

the stall at my local station has a £3 limit on it (usually waived for me as a loyal custonmer :grin:) I’m going to ask about it in the next few days and see what they say. Suspect they were sold the card machine with their business account, and they are lumbered with costs from the bank which are high, but that’s a guess


#72

If I’m paying cash why should I have to pay for other people using cards? All the other costs you mention are general costs. This one only applies if you pay by card


(Jonathon) #73

Well, the alternative would be, like I said, a discount of X% if paying by cash.

This isn’t an easy fix and honestly was a slight off the cuff idea… the basic idea being that there are a myriad of things to consider when pricing.

Also: sorry to inform you but even when paying cash you ARE subsidising other customers usually. Many stores will take a loss on one product to increase sales of another product by very virtue of being in the store at that time. It’s common practice. Likewise you could, for example, increase prices on some products to take account for the loss in other products. Don’t think you’re not funding other people’s purchases :roll_eyes:


#74

Here in Portugal selling below cost is illegal and there have been fines when stores have done so. Its illegal in most other EU countries as well. Is it allowed in the UK?


(Nathan Steer) #75

Retailers can set whatever price they want on products here, I believe… it’s up to them if they want to make a loss on some products. It’s a marketing technique in some cases, put out one product as a “loss leader” with the expectation that the loss on that will be recouped by customers buying other products that you are making a profit on.


(Kevyn) #76

It isn’t illegal in the EU unless a company has a dominant position in that market. The problem is it is also difficult to say that reducing the price of one item to boost sales of others is abuse of a dominant position.


(Jonathon) #77

Never heard of it being illegal at all, so I don’t think you can translate from Portugal to the UK (is there one of you on here doing that a lot or just a lot of Portuguese users as I keep seeing these comparisons! :joy:)


(Nathan Steer) #78

Same person across many conversations :stuck_out_tongue:


#79

I’m so active in the forum and yet it’s taking ages for Monzo to launch in mainland Europe :wink:

Tough to be fair I’ve seen at least 4 other Portuguese users on here.

On a more serious note I really applaud Monzo for having an open forum where we can have open discussions and I really enjoy learning stuff from people in other places


#80

Didn’t know in the EU at large it only applies to abuses of dominant position. Here in Portugal any sale below cost is not legal, no matter who is doing it. It’s considered a practise intended to restrict commerce (law 370/93, article 3)


(Jonathon) #81

I guess the issue here is that… this is the UK. It’s not illegal and perfect common practice. This thread isn’t a discussion on the ethics of pricing though.