UK to ban credit card charges next year

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Forums › Finance and wealth management › UK to ban credit card charges next year

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#1825199 19-Jul-2017 13:45

MikeB4: I don't mind eftpos but most retailers have terminal so slow you would think we were in 33.3k modem days.

My chip card failed the other day and Westpac gave me a magnetic stripe replacement. It's so fast compared to the chip one!

Rikkitic

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#1825220 19-Jul-2017 14:04

Lias:

I don't use cash, I don't use EFTPOS unless I _really_ have to, I use Paywave/PayPass for all physical transactions I can, and of course online purchasing require a credit/debit card.

Rather than credit card charges, I'd much rather see them charge a surcharge for places that haven't adopted Paywave/PayPass, and make you fart around with cash or EFTPOS. If we start charging 20% extra for cash and EFTPOS purchases, we'll encourage people to stop using these crappy old technologies faster.

I pay everything in cash. I don't happen to like leaving a paper trail for commercial interests to exploit or eventual data collection to profile whether I am a threat to State security. I value my privacy and I have every right to. Pay any trendy hip way that advertising propaganda tells you to if you wish, but I'm afraid you will just have to wait patiently while I fart around with my cash. You are not the only person in this world.

Plesse igmore amd axxept applogies in adbance fir anu typos

mattwnz

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#1825234 19-Jul-2017 14:20

I can't see how it will save consumers any money as it will just be added onto the product price. There are pros and cons with having such a fee added on as a surcharge. One good thing with having it added on is that consumers can avoid it by paying using another method. If it is hidden in the product price then everyone is paying for it. Companies in nz used to get around such a law by offering a discount for cash.

Paul1977

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#1825337 19-Jul-2017 15:39

mattwnz: I can't see how it will save consumers any money as it will just be added onto the product price. There are pros and cons with having such a fee added on as a surcharge. One good thing with having it added on is that consumers can avoid it by paying using another method. If it is hidden in the product price then everyone is paying for it. Companies in nz used to get around such a law by offering a discount for cash.

I'd rather it was just hidden in the standard price. My taxes subsidise a lot of things that I get no benefit from, so I don't have a problem with cash and EFTPOS users partially subsidising the credit card fee on my purchases.

allan

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#1825377 19-Jul-2017 16:45

hio77:

Exactly this. though 20% may be slightly extreme..

places that still don't support paywave frustrate me to no ends... have to get out the eftpos card etc... no way would i use a chipped card that just gets silly! "Please insert card" "please scan card" "please insert card"

IMO, the fee for paywave needs to go away, atleast for Debit cards.

Always makes me cringe seeing "NO PAYWAVE" stuck over the top of a terminal.

If you were the poor old dairy or local takeaway owner, you would probably be objecting to paying the fees for Paywave transactions as well. For them EFT-POS is by far and away the cheapest way of handling the transaction.

I do agree with you about the tacky, "No Paywave", or "No Credit Cards" signs taped over the top of a terminal. Don't know why they just don't get their provider to disable the display of the Credit Card option.

mattwnz

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#1825379 19-Jul-2017 16:50

Paul1977:

mattwnz: I can't see how it will save consumers any money as it will just be added onto the product price. There are pros and cons with having such a fee added on as a surcharge. One good thing with having it added on is that consumers can avoid it by paying using another method. If it is hidden in the product price then everyone is paying for it. Companies in nz used to get around such a law by offering a discount for cash.

I'd rather it was just hidden in the standard price. My taxes subsidise a lot of things that I get no benefit from, so I don't have a problem with cash and EFTPOS users partially subsidising the credit card fee on my purchases.

The thing is that many stores have it as an addon, so they can undercut their competition on price. It is rampant for example in the computer parts market in NZ. So it appears it is done a lot more in the sectors where there is a lot of competition and lower margins, where a 2-3% CC fee could eat away most of the profit they would have made. It wasn't that long ago when companies weren't allowed to add on credit card fees, but some savvy ones did 2% cash discounts to get around it.

hio77

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#1825395 19-Jul-2017 17:06

allan:

hio77:

Exactly this. though 20% may be slightly extreme..

places that still don't support paywave frustrate me to no ends... have to get out the eftpos card etc... no way would i use a chipped card that just gets silly! "Please insert card" "please scan card" "please insert card"

IMO, the fee for paywave needs to go away, atleast for Debit cards.

Always makes me cringe seeing "NO PAYWAVE" stuck over the top of a terminal.

If you were the poor old dairy or local takeaway owner, you would probably be objecting to paying the fees for Paywave transactions as well. For them EFT-POS is by far and away the cheapest way of handling the transaction.

I do agree with you about the tacky, "No Paywave", or "No Credit Cards" signs taped over the top of a terminal. Don't know why they just don't get their provider to disable the display of the Credit Card option.

I agree, of the more community based stores it is understandable however... Often i will see this in stores where the same product is more expensive than the store across the road that does offer paywave.

I can totally agree, credit charges etc okay understandable!

Realistically i suppose card companies need to stop bunching the two together or move the to a pricing package that better supports their intended market.

end of the day, paywave is built with conditionals that make it best suited to small charges - the sort you would make at a corner store. No point in trying to buy that tv with it

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mattwnz

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#1825400 19-Jul-2017 17:13

It is the ideal business model, when you can charge a percentage on any transaction, simply for providing the payment method. Sure there are costs involved for the CC companies, but they are not proportional to a percentage fee. No wonder businesses like Apple want to get into that game.

KiwiSurfer

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#1825527 19-Jul-2017 21:29

Behodar:

MikeB4: I don't mind eftpos but most retailers have terminal so slow you would think we were in 33.3k modem days.

My chip card failed the other day and Westpac gave me a magnetic stripe replacement. It's so fast compared to the chip one!

This is why my main card is still my trusty old chip-less and contact-less-less Kiwibank Cirrus card. Near instant authorisations and it works the same way everywhere.

I've observed that my Kiwibank Visa's chip result in slow authorisations at some locations. These same locations have no problems with stripe transactions though.

Paywave is nice but I've also noticed delays in authorisations after the tap. Also different machines seem to expect the card to be held for different lengths of times (resulting in me accidently aborting Paywave transactions when I've taken the card back too early on some of the slower machines).

I think I've been spoilt by AT's mifare cards which are not only fast but also consistently fast. I just place my AT card against the reader for a short instant then stroll pass knowing it's all done. Whereas with Paywave I seem to need to hold it still for a couple of seconds and watch out for the authorisation. It's nowhere as fast as the Paywave TV adverts! Only AT's implementation seems to come close to Visa's marketing which is a bit ironic.

- James

dejadeadnz

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#1825548 19-Jul-2017 22:10

The day I'll accept credit card charges as being reasonable is the day when I see a genuine cash discount for people paying using cash or EFTPOS. Oh wait, no retailer has ever offered this. Gee I wonder why.

Geektastic

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#1825565 19-Jul-2017 22:42

cadman:

Stu:

cadman:

I'm happy for it to remain as-is here. It's effectively a penalty for spending in advance of earning, which I'm all in favour of.

That's what interest is for!

The more the better. NZers didn't used to live on credit. It's just another method to the end of bonded labour.

Using a credit card in the modern world is all but unavoidable really.

Booking and securing hotel rooms and rentals, shopping overseas etc etc.

If you pay it off at the end of the month, it hardly seems like something that should be penalised and as others have said, if you do not pay it off, the interest is penalty enough.

Geektastic

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#1825567 19-Jul-2017 22:50

hio77:

Lias:

I don't use cash, I don't use EFTPOS unless I _really_ have to, I use Paywave/PayPass for all physical transactions I can, and of course online purchasing require a credit/debit card.

Rather than credit card charges, I'd much rather see them charge a surcharge for places that haven't adopted Paywave/PayPass, and make you fart around with cash or EFTPOS. If we start charging 20% extra for cash and EFTPOS purchases, we'll encourage people to stop using these crappy old technologies faster.

Exactly this. though 20% may be slightly extreme..

places that still don't support paywave frustrate me to no ends... have to get out the eftpos card etc... no way would i use a chipped card that just gets silly! "Please insert card" "please scan card" "please insert card"

IMO, the fee for paywave needs to go away, atleast for Debit cards.

Always makes me cringe seeing "NO PAYWAVE" stuck over the top of a terminal.

Our village shop has 4 terminals. 2 are Paywave and 2 are not...!! Even more annoying.

Geektastic

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#1825568 19-Jul-2017 22:51

Rikkitic:

Lias:

I don't use cash, I don't use EFTPOS unless I _really_ have to, I use Paywave/PayPass for all physical transactions I can, and of course online purchasing require a credit/debit card.

Rather than credit card charges, I'd much rather see them charge a surcharge for places that haven't adopted Paywave/PayPass, and make you fart around with cash or EFTPOS. If we start charging 20% extra for cash and EFTPOS purchases, we'll encourage people to stop using these crappy old technologies faster.

I pay everything in cash. I don't happen to like leaving a paper trail for commercial interests to exploit or eventual data collection to profile whether I am a threat to State security. I value my privacy and I have every right to. Pay any trendy hip way that advertising propaganda tells you to if you wish, but I'm afraid you will just have to wait patiently while I fart around with my cash. You are not the only person in this world.

That must be fun when the bill is several thousand dollars...!

k1w1k1d

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#1825571 19-Jul-2017 23:04

I use VISA because it is easy to carry and is accepted just about anywhere and pay it off every month. Much better than carrying a wad of cash (after standing in line at a bank for ages to get it), or carrying a cheque book that most shops won't accept.

When I was in business, cash and cheques were a pain. They had to be held securely and then you had to take them to the bank. Credit cards were easy. The money just arrived in your account. The surcharge was just another business expense that had to be accounted for when working out pricing.

dickytim

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#1825596 20-Jul-2017 06:24

I have finally got rid of all my credit cards :)

I have a Visa debit for online purchases if needed and Trademe for everything else!

I agree that if the ability to charge credit card fees on the price of everything just goes up by 3.5% on everything and the fee is simply hidden and charged to everyone. The fee is a reward for using your own money.

To those that want people penalised for using credit cards get off your high horse, they are, they pay interest and have constant debt over their heads, I have lived with this for a long time and I don't intend to go back, but that is my choice.

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