A solution to non direct debits charge?

indebtstudent · 23rd June 2007, 16:21

I admit I have not looked this up but isn't there a law, in the UK, which says that a customer CANNOT be charged more by paying by card? Or can the companies get round this by arguing that, if paying by cash, the charge would be the same?

snu · 23rd June 2007, 18:02

No, there isn't. Any such term would be in the merchant agreement between the company and the payment processor. VISA etc are pushing quite hard to make it so that shops don't charge more for paying by card, and don't have minimum transaction limits etc, but I don't know what the situation is with regards to billing for telcos.

OrangePrimate · 24th June 2007, 01:17

Quote:

Originally Posted by indebtstudent

I admit I have not looked this up but isn't there a law, in the UK, which says that a customer CANNOT be charged more by paying by card? Or can the companies get round this by arguing that, if paying by cash, the charge would be the same?

i'm sure i have read/seen reference to the fact that consumers cant be charged for paying by card. But as you say the only problem here is it wouldnt be relevant. The companies would say they are not charging the fee for paying by card because the charge is there even if you pay cash over the counter at a bank or mobile phone store, or post in a cheque.

must admit i prefer the 'you will get a yearly discount for paying by D/D'
(yikes, dont all gasp in horror and shout at me!)
I do pay by D/D when companies do this because it feels like they are giving me something, and i am notorious for forgetting to pay my bills on time!

buzby · 24th June 2007, 12:20

This is historical - when Barclaycard (and later Access) launched in the UK - around 1968 if I recall - their Merchant Terms stated that card customers could not be charged more than those paying by any other method. The Government then introduced legislation that prevented dis-similar charging but only for RETAIL PETROL sales.

About 10 years ago, the Merchant Contracts were modified to allow the charging of % fees (originally by travel agencies) when using a card, and then the restriction was completely removed. Only the petrol condition remains in law.

snu · 24th June 2007, 13:01

I'm not convinced that it's completely gone for retail, but at any rate the point is that it'd be a violation of the contract the retail shop has with the person provisioning their merchant account or VISA etc, not with the customer.

buzby · 24th June 2007, 13:04

The Merchant Visa T&C's I read last year (they are available online) does specifically allow for this - as opposed to not mentioning it at all.

I think you can still read it online, as it forms part of Barclay's/HSBC etc online merchant signup information.

snu · 24th June 2007, 13:08

Well, that might be the case but it's irrelevant.

indebtstudent · 29th June 2007, 02:07

Darn, thought I was on to something there

Oh well.

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