The government has revealed recently that “rip-off card charges” are to be banned from 13th January 2018.
Many people and organisations make these charges, and we have been as annoyed as anyone else by unannounced charges being added at checkout.
Charges made by the card companies to the supplier depends largely on the number of transactions processed on the supplier’s account. We made the decision several years ago to accept card payments, and we are currently charged a flat fee by the card management company of 12p when we accept payment by debit card and 2.5% when a client pays by credit card. We do not add any surcharge if a client pays by debit card, but add 3% if they pay by credit card. These terms are clearly stated on our invoices.
We do not consider that these charges made by ourselves amount to a “rip-off”. We are, instead, simply passing on charges made to ourselves, and that we have to pay, which enable clients to take an additional 30-45 days of interest free credit. However, we do not wish there to be even the slightest possibility of any such accusation being levied against us, even by someone who themselves benefit substantially from them. After all, HMRC themselves add these “rip-off” charges to the amount payable by their “customers” who pay by credit card.
Accordingly, with immediate effect, please note that we will no longer add this surcharge when people pay by credit card.
Come on Theresa. Follow our lead and instruct the Treasury to similarly stop ripping-off the British public!
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