[Finance] Contactless minimum spend and the Law.

[Leekbrookgull]

What is the law on this,used a loo in Grange over Sands 30p and C/less payment. However is the minimum sign spend when you a small outfit (£5) legal ?

 

[Brighthelmstone]

Don't believe its in law. However, nothing stopping companies from only accepting between £5 and £45 as their limits. the minimum charge for using a card (that the retailer has to pay) was 17p per transaction, depending on the issuing card type and can be upto a £1 as a min, which i believe is Amex.

Unless the law has changed in the last few years then i can see why some smaller outfits do put a limit on things.

 

[Cian]

Generally, the merchant agreement bans minimum transactions limits but its a massive faff to complain to the merchant provider if you can even find out who it is; and really nothing is going to happen - the merchant provider makes their money from the shop not from the punter when it comes down to it.

Interchange fees were slashed hugely for conventional cards under PSD2, which still applies to the UK for a few months, so I don't think anyone is paying 17p a transaction anymore.

 

[Bry Nylon]

What is the law on this,used a loo in Grange over Sands 30p and C/less payment. However is the minimum sign spend when you a small outfit

I'm not sure the size of your penis matters.

 

[Brian Parsons]

From what my daughter tells me, during Covid there is no minimum and the maximum has been raised on most cards. She works for Santander. So technically you could buy a box of matches as the only transaction.

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[beorhthelm]

minimum spend is just the shop's choice, like not accepting £50 notes, cheques, or no cards at all.

 

[Official Old Man]

17p per transaction is not exactly true.
I pay every month £25 to the merchant company. July my other charges were £75 service charges and £50 fees. That's £150 for 1215 transactions. Or an average of 12p per transaction.
But I use the machine a lot so hassle for low rates. A small corner shop may be paying a lot more. So when you tap for an item costing 70p with a 25% profit margin you can see why the shopkeeper may be a bit miffed.
I have a minimum £5 but with average sales, including cash sales, of £7 most customers are over that anyway.

 

[heathgate]

Don't believe its in law. However, nothing stopping companies from only accepting between £5 and £45 as their limits. the minimum charge for using a card (that the retailer has to pay) was 17p per transaction, depending on the issuing card type and can be upto a £1 as a min, which i believe is Amex.

Unless the law has changed in the last few years then i can see why some smaller outfits do put a limit on things.

We run worldpay contactless at the cricket club,.... 2.5% plus 4p per transaction.... this is fairly standard and applies to all card types.

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[dazzer6666]

If there was a minimum in law all of the new car park payment machines would probably be breaking it.........80p first hour in most Burgess Hill car parks for example, paid by contactless.

 

[Harry Wilson's tackle]

Back after a ban with a cracking new thread

 

[Justice]

17p per transaction is not exactly true.
I pay every month £25 to the merchant company. July my other charges were £75 service charges and £50 fees. That's £150 for 1215 transactions. Or an average of 12p per transaction.
But I use the machine a lot so hassle for low rates. A small corner shop may be paying a lot more. So when you tap for an item costing 70p with a 25% profit margin you can see why the shopkeeper may be a bit miffed.
I have a minimum £5 but with average sales, including cash sales, of £7 most customers are over that anyway.

I use izettle no monthly fees and 1.75% fee. All my transactions are over £75 so it’s not relevant. All the small shops around us let you pay with card for any amount since covid which is a help.

 

[Bodian]

My local greengrocers didn't have contactless at all till the last few years (when I moved here, they added things up on a sheet of cardboard on the counter). They do now, and since lockdown eased have re-imposed a minimum of £4. I asked them about this, and Mrs Greengrocer said it takes her ages to marry up all the till documents and machine transactions every night, so she'd rather have cash. Hence a minimum to try and limit the number she has to deal with each evening.

 

[Perfidious Albion]

Must have been last Summer when I was refused contactless debit card payment for. £2 drink in a cafe. I told them that was So twentieth century...

 

[WATFORD zero]

Generally, the merchant agreement bans minimum transactions limits but its a massive faff to complain to the merchant provider if you can even find out who it is; and really nothing is going to happen - the merchant provider makes their money from the shop not from the punter when it comes down to it.

Interchange fees were slashed hugely for conventional cards under PSD2, which still applies to the UK for a few months, so I don't think anyone is paying 17p a transaction anymore.

But all bets off on 1st Jan 2021 when PSD2 ceases to apply as we currently stand, isn't it ?

 

[Tim Over Whelmed]

I'm not sure the size of your penis matters.

Thank the lord!