Written by: Keith Tully
Date: Monday 22nd January, 2018
The recently introduced ban on surcharges associated with credit card or debit card payments could see a growing number of SMEs switching to cash only policies in the coming weeks.
The ban came into effect in mid-January in response to an EU directive on the matter and means that businesses can no longer issue their customers with extra charges to cover the cost of processing a card payment.
However, some businesses could be looking to find ways in which they might avoid having to meet the cost of processing card payments themselves.
The apparent aim of banning card payment surcharges, both in stores and online, was to bring benefits to shoppers and consumers but it could be that some will soon find themselves unable to make card payments in as many stores or situations as has previously been the case.
There are also concerns in some quarters that the costs associated with processing card payments will gradually be incorporated into the prices of goods and services being sold by SMEs around the country.
It is already common to see small businesses insisting on £5 or £10 minimum limits on card payments and that practice could become considerably more widespread in the coming months.
In recent weeks, the Association of Convenience Stores (ACS) has been urging its members to get their policies in line with the new laws on card payment surcharges, which came into effect on January 13th.
According to the ACS, around 13 per cent of its members across the UK had been adding surcharges to their customers’ card payments, while an estimated 33 per cent have minimum spend limits on card payments and around 8 per cent already do not accept card payments at all.
The ACS’ chief executive James Lowman has said that the EU’s Payment Services Directive (PSD2), which led to the recent rule changes in the UK, were “introduced mainly to stop excessive card payment charges by online retailers and service providers”.
However, Mr Lowman noted that the rule change will certainly impact most of his organisation’s members along with many other small and medium-sized businesses throughout the country.
13th February 2018 Investigations into payroll arrangements among companies across the UK brought in around £819 million to the Treasury during the 2016/17 tax year.
8th February 2018 Hartlepool’s main football club now faces a distinctly uncertain future with a court date having been set at which HMRC will make the case for the business to be liquidated.
7th February 2018 The collapse of the facilities management and construction services giant Carillion in recent weeks could add considerably to the rising number of insolvencies within the UK’s construction sector.
24th January 2018 The Premier League football player Glenn Murray and his wife Stacey have both been arrested as part of an HMRC investigation into possible tax fraud.
22nd January 2018 The recently introduced ban on surcharges associated with credit card or debit card payments could see a growing number of SMEs switching to cash only policies in the coming weeks.
Every day we help companies just like yours turn things around against seemingly impossible odds, regardless of your situation we can help. Find your nearest office today.