RE: FN-FORUM: Charging for payments

date posted 9th January 2006 14:58

So leaving that aside - you say you'd be happy to pay the CC "fee" on a =
small amount but not on a large ?

Do you think that's the same for most people ? If a CC fee is 3% then on =
a =A310 transaction that'd only account for 30p, so all well and good, =
but on a =A31000 transaction it's =A330. The % is still the same, but it =
feels more ?

If the shop is purchasing items and marking up then for low cost items, =
the mark up might be a lot more than on the higher cost items, e.g.,=20

"256mb USB memory stick" cost (say) =A35, selling price =A315, so =A310 =
markup - CC fees @3% =3D 45p, net profit to shop - =A39.55.

"=A31000 laptop", cost (say) =A3850, selling price =A31000, =A3150 =
markup, CC fees @3% =3D =A330, net profit to shop =A3135.


It's just a bit galling to have to take the 3% hit on the full =A31000 =
rather than on the difference =A3150.

That's business I guess...

Anybody want to set up a credit card company ?




=20

-----Original Message-----
From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of Alain =
Williams
Sent: Monday, January 09, 2006 3:00 PM
To: Andy Macnaughton-Jones
Subject: Re: FN-FORUM: Charging for payments


On Mon, Jan 09, 2006 at 02:52:34PM -0000, Richard Quick wrote:
>=20
> I can't think of a single national retailer that charges individual=20
> customers more for credit cards. What they do instead is build credit =

> card costs into their overall pricing.
>=20
> Tesco, M&S etc are merely pointing out that some of your bill will go=20
> to their credit card arm - it doesn't cost you extra.

For this scam to work they had to get your agreement to 'buy' a =
financial service from them. 'pointing out' was not good enough - since =
the decision on how they spent the money of the sale is up to them but =
they would still need to pay VAT on the full amount.

It is basically a con, fraud, a VAT scam.

> It's not illegal to charge more for credit cards, but it's probably=20
> not good business sense. My local chippy accepts credit cards, but=20
> there's a 40p surcharge. Personally speaking I'd be outraged it Tesco =

> did this, but I don't mind a small business doing it.

I don't mind a surcharge if I choose to use a CC on a small transaction, =
on a large one ( > 10 quid) I would expect anyone to absorb the cost.

--
Alain Williams
Parliament Hill Computers Ltd.
Linux Consultant - Mail systems, Web sites, Networking, Programmer, IT =
Lecturer.
+44 (0) 787 668 0256 http://www.phcomp.co.uk/

#include

--=20
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