Related Credit Card Article

"Retailers want card transaction fees cut"

By admin | May 16th, 2009 | Credit Cards

Retailers are calling on credit card companies to reduce their credit card transactions fees so that the strain on retailers is also reduced during the current difficult climate.

According to figures from the British Retail Consortium cash only accounts for around one third of retail transactions, even though in total it accounts for over 50 percent of all transactions. Because of the high credit and debit card transactions fees levied by credit card companies many retailers are struggling in the current climate, according to reports.

Retailers have to pay around thirty five pence for the average credit card transaction, and around eight pence on the average debit card transaction. However, for cash transactions retailers only have to pay two pence, which means that they are paying far more out on card transactions than they are for cash ones. The British Retail Consortium said that the viability of many retailers is being threatened because of the level of transaction fees that is being charged on card transactions.

Officials from the British Retail Consortium said that these high card transactions fees were also detrimental for customers, stating that if the transaction fees on credit and debit card transactions were as low as they were for cash transactions retailers would be able to pass around £800 million worth of savings on to customers, which would of course prove invaluable to consumers in the current climate, where many cannot afford to spend at the level that they would like to.

BRC director-general Stephen Robertson said: “Banks are pushing new cards and payment technologies hard. Not surprising when they stand to make so much more in charges. Despite the recession, they are looking to maximise their profits and protect their own interests at the expense of customers who ultimately meet these costs.”

Related Articles:

• MasterCard will have to stop cross border transaction fees

  Payment card giant MasterCard is being forced to abolish its cross border transaction fees, which are charges on international transactions made on the MasterCard and Maestro credit and debit cards. The order has been issued by the European Competition Commissioner. The fees that are charged by the card company on cross border transactions can be...

• Credit card use fell last year

  Credit cards have provided consumers with convenience, ease and flexibility for many years, which has helped them to become hugely popular. However, they have also resulted in huge debt levels amongst those that have come to rely on their in the difficult financial market and those who find it difficult to control their spending. Credit...

• Nationwide to charge for using credit and debit card overseas

  According to a recent report Nationwide is to start charging consumers who use its credit cards and debit cards overseas, and this results from a change of policy that will see customers that use their plastic overseas being hit with a charge from the building society. The changes will come into effect from the first...

• Increase in debit card popularity

  A recent report has shown that there was an increase in the use of debit cards at UK retailers last year. Over the course of last year the level of spending on debit cards at retailers across the nation is said to have spiked by around 11%. Whilst consumers tend to enjoy the convenience and...

• Retail giant to trial tap and go technology

  Over recent years more and more consumers that don’t want the hassle and danger of carrying money around and don’t want the inconvenience of writing cheques have turned to plastic cards to make transactions when making purchases. This includes debit cards, credit cards, and store cards, all of which have provided consumers with ease, speed,...

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More