Surcharge for credit card payments to go

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greenbarn
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Surcharge for credit card payments to go

Post by greenbarn »

This has apparently been in the pipeline for a while, but I only found out today from my card payment services provider.

After 13th January 2018 you won’t be able to add a surcharge to any card payment; this replaces the existing regulation that you can’t add a surcharge in excess of what the service costs you.

Google "Payment services directive 2” for more info.
FelicityA
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Post by FelicityA »

Then the only thing you can do is advertise all your prices with the amount you pay to your card provider (does this include PayPal, I wonder?) and then discount to those who pay another way - transferwise for abroad, BT for domestic for example.
sylvainbg
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Post by sylvainbg »

It's the way I do, I offer discount when it's pay by bank transfer or cash.
My card fees with stripe is only 1,4% so in all case it's small
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greenbarn
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Post by greenbarn »

I absorb the costs anyway as I think taking credit card payments is another marketing tool for attracting guests.

Discounting for other forms of payment amounts to the same thing as surcharging for a card payment, although it may be less obvious depending on how it’s presented.

I don’t accept Paypal, but at a guess (and a completely uninformed one, so don’t quote me!) as you’re not taking a card payment directly it might not apply. You’re using an intermediary (which is why the guest doesn’t have the standard level of card payment protection) who are charging for their services, not a card provider, and Paypal apply their charge regardless of the payment method used by the guest.

It might stir some competition and we could possibly see a drop in card charges as a result. Or they’ll increase the charges for the small fry (us) and reduce them for the big users... :?
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