The law around applying surcharges to consumers if paying by card became illegal in January. As mentioned in previous posts, these charges can be as high as three per cent in the small business sector, particularly where businesses have never gone back and reviewed charges or penalised for non-compliance. This is a competitive market and your costs for this service should be less than one per cent after terminal fees.
Charges banned for;
- Payments made by credit or debit cards
- Online payments
- Credit transfers and direct debit
Charges not banned for;
- Commercial cards
- International transfers
- Minimum card spend
The Banks have already started to announce changes in the rates to some of their customers, which take effect from the 1st March.
Are rate increases just the beginning?
If you have received your notification letter and would like to consider switching contact us here.