This is a strange decision I feel, very much to the benefit of larger companies who pay a significantly lower processing cost per transaction.
It means that little people like myself have three options: raise all prices by whatever percentage it is that the processing fee is; charge as normal and take the hit if a client decides to pay by card; wing it and try to charge people as i may suspect they'd best prefer, which is illegal.
I'm really not sure how the customer benefits, as I assume most businesses will simply raise all their prices.
The likes of Visa and Mastercard will be happy though, which is good?
Wow. What is the stated rationale behind this?
- ed
Curious, I had a quick Google, and lo — from a few months after the legislation was introduced... https://www.theguardian.com/money/2018/jun/17/credit-debit-c...
There are shops who charges extra if you paying with credit card on the other hand there are shops where only credit/debit cards are accepted. And in both cases there is some logic behind that.
There are additional charges payed by merchant when you pay with credit card, small business just pass that on to customer. For others handling cash is more work. You need to have a reserve to give change, collect cash at the end of the day and put it to safe. Someday move accumulated cash to bank. There's also risk of employee stealing cash. So accepting only cards makes also sense.