This topic contains 7 replies, has 2 voices, and was last updated by LawJaw 3 weeks, 5 days ago.
February 20, 2018 at 10:40 am #152818
Mike Ruff, GW editorKeymaster
Garages must stop charging customers for credit and debit card payments with immediate effect, the Independent Garage Association (IGA) has said. It f
[See the full post at: Garages told to stop charging customers for card payments with “immediate effect”]February 20, 2018 at 1:04 pm #152823
Please can you confirm that it remains legal to re-charge the actual cost of taking a card payment in a business to business transaction, but not to charge any margin on such costs. I have heard that such a transaction is distinctly different from a consumer transaction and is not governed by these new rules.February 20, 2018 at 1:10 pm #152824
As understand it you are no longer allowed to make any charge for using these forms of payments under any name.February 20, 2018 at 2:59 pm #152826
We have not and never will charge a customer for a card payment its is such a small % any wayFebruary 20, 2018 at 3:40 pm #152827
we get people comeing in with pink tracfic tickets we charge them £5.00 on a credit card is just silly this is what we have to put up withFebruary 20, 2018 at 4:27 pm #152828
I notice that the DVLA are still charging £2.50 for credit card transactions for businesses to renew their vehicle excise duty, seems like one rule for us and not for themFebruary 21, 2018 at 10:51 pm #152854
The joke is that government lays rules not to charge credit and debit cards, but when it comes to paying Corporation tax to HMRC they suddenly stopped accepting credit cards presumably can’t make money not charging commission on cards. Double standards. What a shame.February 23, 2018 at 11:11 am #152892
The new law only applies to consumers and so businesses CAN still be charged fees, but this can only be the amount it costs to process the transaction.
The surcharge rules are based on how you pay not who you are, though. So if you pay with a business credit card you can be charged extra, but if you’re a business owner using your personal credit card you can’t be charged the surcharge.
The problem is working out in advance what the precise cost to the seller will be when another business buys using their business card and so it has to be framed in terms of % of the transaction and must be no greater a percentage imposed by the card provider for that transaction. So a fixed charge for each transaction (regardless of price of goods) is not permitted.
The other issue is for sole traders who buy goods. The name on the card may be their personal name but it could be a business card but if one is unsure it has to be assumed to be a personal card so no charge.
What cannot happen is our clients saying “the buyer said he was a trade buyer and so we imposed a charge for him using his card.” As stated above, only if a business credit card is used can you pass on the charges and even then it has to be capped at the precise amount imposed by the card provider.
This is unhelpful and confusing. For example is it a trade to trade transaction or a consumer transaction when a business pays for goods by placing a 10% deposit on their business credit card (and a charge is imposed) and the remainder using their personal credit card (where no charge can be imposed) even though the invoice is made out to the business?