PayPoint Shops don’t know how to process cash deposits


(Simon) #148

Thought it might be part of their contract with paypoint. There was no reason given just they won’t do it anymore.
I did buy things also when using the store.
But like you say he can refuse if he wishes.


(Hugh Wells) #149

Essentially because it wasn’t possible because of the card profile issue :slight_smile:


(Leon) #150

That could of been overcome if the bank really wanted it to be for example Starling did by sending out new cards, Monzo could of done the same. I appreciate you getting back to me but it sounds a little like a excuse. (Not by you I’m talking about why the bank decided not too.)


(Hugh Wells) #151

Apologies for the bad phrasing :disappointed:

So, the reason we decided not to do that is that it could have caused significant issues with merchant acceptance.

It required adding a second application to our cards which I think we were advised could cause problems for terminals, particularly abroad :grimacing:

Post Office need more than 1 AID (Application Identifier) on a card so that their systems can differentiate between it being just a ‘payment’ card or a ‘banking services’ card. Our cards only have 1 AID, Mastercard Debit, and these can only be installed at personalisation time (when the card is produced) - adding more would require us to re-issue all our cards.

I think there were some more nuances regarding exactly how the application worked but it was a while back I’m afraid :sweat_smile:

Essentially, the biggest blocker would be having to reissue a lot of cards which isn’t inherently an issue but would be a bit of an operational pain (customers thinking they had the right card to use at the Post Office, some kind of rolling replacement programme to avoid overwhelming the card producers) :disappointed: It’s certainly something we’ll always continue to review but if the choice is PayPoint vs nothing then I think there is a distinct advantage in one :wink: :+1:


(Leon) #152

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. :+1:


(Jamie 🏳️‍🌈) #153

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.


#154

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?


#155

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.


(Simon) #156

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


(Hugh Wells) #157

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 :+1: Card profiles are fairly complicated though and getting, then adding, a second AID is non-trivial :slight_smile: