Thanks a lot for making the reasons a lot clearer to myself, you didn’t have to but I appreciate you doing so. Thanks again.
Just to clarify, whenever you buy something in a shop, you’re making a contract (offer, acceptance and consideration) with the shopkeeper. You’re saying, “I offer to buy this tin of beans and this chocolate bar from you. The shopkeeper accepts and says, “I’ll sell them for £1.” When you hand over the cash, the consideration takes place and the contract is complete.
The shopkeeper can always say, “I’ll sell you the beans but not the chocolate bar, for 50p” and you always have the right to continue with that purchase or go elsewhere. Just think of the PayPoint service as the chocolate bar.
The shopkeeper can, if he wants, also tell you you’re barred from the shop and not serve you at all; you have no automatic right to access the PayPoint service.
PayPoint can’t make him do business with someone he doesn’t want to. In business terms, if his time is not worth what he earns from the PayPoint commission (at the point of sale, administration and banking the cash later etc.) and he’s not getting any extra business from the customer, then refusing makes perfect business sense in that respect.
You say that - but some other banks use card swipe so there must be alternatives.
Also, you said multiple applications on a card can cause payment issues abroad, so why doesn’t this present an issue for every other bank in the UK with post office applications on the cards?
I doubt this. I would expect paypoint to have a contract which insists on the shopkeeper providing paypoint services if he’s displaying the paypoint signage. There will be reasonable exceptions (abusive customers, etc) but the shopkeeper won’t be allowed to refuse on a whim.
Realistically, there won’t be much that paypoint can do except cease working with the shop, but the shopkeeper will have an obligation (of sorts) to provide these services.
Agreed but that’s not great from a service point of view if across the country, people are going to be refused to pay in cash.
I think monzo is great, I don’t need to pay in cash often and I was doing it mainly to test and see how it works.
However as they become bigger, there will be more people who want to pay in cash, if this process is difficult, feedback won’t be great and people will bank elsewhere.
If more refusals to accept Monzo in paypoint stores happen and there is no way of preventing it, then it might be best to add a message saying to check that Monzo is accepted with the store in advance so people don’t end up frustrated and walking / driving round with pockets of cash searching for another paypoint store.
I could however be an isolated case as most people seem to have trouble getting the store to understand what to do rather than being refused
Yup, I believe this is an alternative being looked at but from what I understand it’s not the preferred option as it adds quite a large delay in the Post Office as the card has to be handed over and swiped, then handed back.
Looking back I can only see brief reference to this so I guess the concerns were resolved fairly quickly Card profiles are fairly complicated though and getting, then adding, a second AID is non-trivial
I just tried to deposit for the first time today and failed. After a tough time explaining what I wanted to do and being told “no card, cash only at Paypoint” I think I got it across. The card was swiped and the machine apparently asked £10?, £20?.. etc. I said £66. He seemed to key it in and then told me “not approved or declined”. Meanwhile I had to tell him to serve two other customers who were waiting.
I doubt if I will bother trying again.
I’ve had a similar issue before where the guy serving me had no idea what I was talking about.
So I just said it was a prepaid card and asked him to swipe it.
It worked after that.
It’s not ideal, but it’s not a big issue. If you start with “I’ve done it before at another PayPoint” they’ll understand all PayPoints offer the same services, so it can be done;)
He clearly couldn’t figure out how to input a custom value and as I couldn’t go behind the counter I couldn’t help him. Kept telling me to go to the Post Office. There are other ways to deposit, it’s not worth the bother.
Or another option, you could use it as partial (or full) payment towards your next card purchase. EG a weekly grocery shop
Indeed. Given the limits on deposit amounts there probably is no need for it at all. Just spend it. Like many others, I was simply curious. I like to try new things to see if they work.
Yeah there’s nothing wrong with that at all, just giving you another option that’s all
I’ve never deposited cash into my Monzo account and probably never will. It’s rare that I get it and if I do I use it towards the next purchase as I’ve suggested above or buying my lunch with it etc.
Obviously this can’t work for everyone, plus if Monzo are offering the service it needs to be on par with all their others All feedback is good as Monzo keep saying
I am a paypoint retailer and I am going to try help by explaining a few facts.
Firstly I have never had any notification regarding Monzo payments however using paypoint isn’t rocket science and most things can be dealt with fairly quickly and easily. There are 2 types of PP machine, I can only speak of the older yellow box style.
Firstly our machine costs £10 month (£10 week if iPad type of machine)
Retailer commission is capped at 10p per transaction.
Business bank fees are 70p per £100
Hopefully this will explain why a lot of PP retailers really don’t want to take this type of transaction. I would love to know how much Monzo are being charged by PP as retailers are being fleeced.
So if you come in to the shop and want to pay £100 onto your Monzo, I get 10p commission but I am charged 70p by my bank for depositing the cash. (I need to stay in business)
Over 90% of my PP customers do not purchase anything in the store, so no way to cover the costs here. I am really not surprised by the fact that customers are being told these type of transactions ‘don’t work’ especially in small independent shops, we simply can’t afford to take these payments.
Thank you for explaining that. I won’t be using it again
Could you break that charge down - is that per cash deposit or per £x that you deposit or ..?
Most business banks I’ve used give you a free threshold usually between £1 & £2k per month before charging around 1% per £100 deposited over that limit.
I used £100 Monzo deposit as an example so my bank charges 70p for that. It charges 70p per £100 banked so that’s 0.7%.
Where is the advantage for you in providing the paypoint service at all (not just Monzo cash deposits)?
Seems a total pain in the ass
Paypoint seem to think that the fact you have to bank the cash isn’t their problem and they also claim Pp customers spend more in store, this is not true in my case. It gets worse though, they have reduced their commission steadily year on year and we get less commission for utility payments. Now we see councils passing over rent and council tax payments saving themselves money. I am removing my machine as soon as the contract expires. PP earns millions in profit as small shops suffer.
The whole PayPoint thing seems to get more and more ridiculous. It seems Monzo didn’t have the customer or anyone else in mind with this decision.