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VacantPossession

Oft And Rip Off Bank Charges

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This must be a world record folks. FIVE and ONE HALF YEARS to finish an "investigation" into bank ripoffs on retailers (and indirectly consumers). See today's blog.

I want you to imagine being in a cell for five and a half years...what's that....around two thousand days. Now multiply that by the number of people doing this "investigation".....10, 20, 30 people? Now calculate the number of man-hours spent on this "investigation".

Now see if you think the tax payer gets good value for money, the investigation having come to a conclusion that was blindingly obvious from the very start. OK....allow three weeks to do the research in order to come to that conclusion. Alright let's be super generous and allow three months.

BUT FIVE YEARS!!! By which time all the damage has been done already.

Yes, dear tax payer and consumer, THIS is the real meaning of public watchdogs, "regulators" and a whole army of generously paid researchers on your and my behalf. Now add to this the enormous time it takes to get a case to court, the enormous cost of legal redress, the spineless, gutless agencies like ICSTIS, OFT, OFCOM, FSA and a whole litany of street corner layabouts who claim to be the guardians of voters' and consumers' interests.

Pah!

VP

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I'm glad that the report has finally been published...

We (my Company) take debit cards, but not credit cards. The reason for this is the amount we lose every time we accept one.

We can recover that through just charging everyone more even though most of the Customers are business customers who pay by cheque/BACS and who have no or little interest in paying by credit card.

That's hardly fair, but of course, that's how it normally works and through necessity we all pay more for goods and services so the card companies can get a cut. Consumers simply don't realise this.

Recently Debehnams was one of the first retailers to get caught out. What they had done in common with many retailers was to itemise the 2.5% CC charge on the bill, even though the total stayed the same. This then enabled them to get out of paying VAT on that portion because it's a "fee".

The Government saw this and decided to hastily shut down that loop hole.

Ikea has already begun surcharging for credit card use. Travel Agents, theatres and some other sectors are already "allowed" to pass the surcharge onto the Customer and do so.

I suspect it's only a matter of time before someone big like Tesco imposes a charge for paying by credit card (after all, if you *need* to use a credit card to pay for your weekly shopping there's something going wrong somewhere) and then everyone follows suit.

Interestingly although it's against the terms of our Merchant account to surcharge the Customer - Visa/MC stipulate this - from what I've read, Visa/MC can do little about it, as their term and condition is contrary to English law which permits surcharging, whereas in the US the law explicitly forbids it.

This does mean that retailers can ignore it and then I suspect if Visa/MC pull their account (which they're not going to do to Ikea or Tesco), actually, Visa/MC are legally in the wrong, because that condition is unenforcible.

If surcharges became commonplace, I suspect that all that would happen is that the card companies might look to recover the lost revenue by reintroducing annual fees for cards. In any event it puts the ball back in their court.

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Guest Bart of Darkness

Reports (and government enquiries) usually take many years to deliver their findings so that everyone has forgotten about whatever it is they were demanding a report on all those years ago.

Still, I could probably have done the report single handed in five and a half years, and still had several long holidays a year. :rolleyes:

Edited by Bart of Darkness

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Guest Charlie The Tramp
I suspect it's only a matter of time before someone big like Tesco imposes a charge for paying by credit card (after all, if you *need* to use a credit card to pay for your weekly shopping there's something going wrong somewhere) and then everyone follows suit.

I believe companies like Tesco want you to pay by credit card or debit card. I`ve heard it costs them a fortune for cash to be transported to the bank by the Security Companies, hence the free cash back facility offered by the big supermarkets. <_<

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That's true.

However with a 2.5% handling charge for credit cards (I doubt Tesco pay that much, they have probably negotiated something rather better than the majority of smaller retailers get) and a 10p handling charge for a debit card transaction... I think they would rather encourage people to use a debit card.

Adding a surcharge for credit card payment is the ideal way to do that, I don't think it would result in any more cash going through the tills or even cheques - just about everyone has a debit card these days.

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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