Are card charges on businesses fair?
The cost of accepting cards by retailers is lower than it was five years ago as technology has developed over time, according to the UK Cards Association.
Sandra Quinn, director of communications for the organisation noted that while retailers pay around eight pence per debit card transaction, it used to be £20.
"There is a commercial agreement to do with the necessary standards and they are much cheaper than they were five or ten years ago," she said.
However, the British Retail Consortium (BRC) released a report last week stating that the government must clamp down on the "excessive" charges that banks levy on retailers for accepting plastic.
It claimed that bank charges have almost doubled in five years.
Businesses pay 2.1 pence for cash transactions, 8.5 pence for debit cards and 34 pence for credit cards.
This could have a large affect on the finances of small businesses, who might not be able to afford mounting costs of transaction charges in addition to other costs that will be unveiled in tomorrow's (June 22nd) Budget.
Posted by Christopher Evans
Published on: June 21, 2010
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