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Uk High Street Giants Sue Visa Over Rip-Off Card Fees

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http://www.telegraph.co.uk/finance/10205416/UK-high-street-giants-sue-Visa-over-rip-off-card-fees.html

Court papers emerged yesterday which revealed a consortium of retailers led by Asda had lodged papers against Visa Inc. in the High Court on Tuesday.

Sources told the Daily Telegraph the retailers, also including Next, B&Q and Debenhams, wanted to recoup payment processing or interchange fees dating back "ten years".

It follows a settlement in the US last year where Visa and Mastercard agreed to pay US retailers $7.25 billion - the largest anti-trust settlement in US history.

Wal-Mart, Asda's US owner, were one of those retailers that opposed the settlment.

The move in the High Court will some of the high street's biggest names against the world's financial sector. Visa is a not-for-profit organisation run by the banks.

Nice I look forward to the refunds from the shops as this clearly would have allowed them to sell goods at a lower price if the fees weren't so high. Good to see the big retailers taking on the banks to lower costs and refund their customers.

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http://www.telegraph.co.uk/finance/10205416/UK-high-street-giants-sue-Visa-over-rip-off-card-fees.html

Nice I look forward to the refunds from the shops as this clearly would have allowed them to sell goods at a lower price if the fees weren't so high. Good to see the big retailers taking on the banks to lower costs and refund their customers.

It was tongue in cheek I know, shops won't refund buyers as the administration cost of doing this would be massive, although it should force future downward pressure on prices. Buyers would be free to start their own class action against VISA.

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However money is collected it costs, cash costs and all the cards cost the retailer......they will only charge an annual fee for both retailers and current account holders......talking to a guy working on the till in one of these big supermarkets....nine hour shift, half an hour break, just paid over minimum wage...... ;)

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Basically debit cards, for largish retailers will be somewhere between 10-15p/transaction and credit cards Visa/Mastercard nearer 1% than 2% Amex is more and is very borderline as to whether it's worth accepting. Weird that the EU is talking about a capped percentage on debit cards when it's a flat pence charge per transaction in this country. No real benefit for consumers but easy PR for retailers pretending there is.

There is a very valid argument from card companies that the fees, in the case of credit cards, cover things like insurance if a retailer goes bust and other perks and debit cards will have a cost to fraud as well.

What would be in consumer's interest would be attacking Paypal which, they'll say is for simplicity, charges a very high percentage plus a 20p flat charge on every transaction regardless whether the funds ultimately originated from a credit card, debit card, bank account or paypal account balance, the processing costs of which would vary significantly.

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What is stopping a small business saying they don't take cards there is a cash point next door/up the road, use that and call in with the cash.........cash and carry? ;)

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What is stopping a small business saying they don't take cards there is a cash point next door/up the road, use that and call in with the cash.........cash and carry? ;)

Er...........

Stacks of business, no-one will be arsed to walk to a cashpoint to save 1% and on top of that continual harassment by HMRC inspections as a pure cash business. People spend more on cards too.

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What is stopping a small business saying they don't take cards there is a cash point next door/up the road, use that and call in with the cash.........cash and carry? ;)

Poundland don't takes cards for less than £5 (most stores are £1 min. )& have an ATM inside the store

Edited by Saving For a Space Ship

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Er...........

Stacks of business, no-one will be arsed to walk to a cashpoint to save 1% and on top of that continual harassment by HMRC inspections as a pure cash business. People spend more on cards too.

..depends on how small you are and how much someone wants it. ;)

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  • 243 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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