I recently paid for a item in a national DIY store. I Paid on my Debit card. I was given a customer copy invoice. When I got home I noticed there were some "conditions" attached, one of which was that I paid 2.5% extra for using my debit card. I checked with the store and was told don't worry it's included in the price. Now I am wondering if I would have got a 2.5% discount if I had paid cash? I am also wondering if this is happening in other stores?

They are charging this because it costs them to use the 'card' system to take payment. It's a disgrace. I used to work for Norwich Union Direct Car Insurance and they would charge 8% extra to take payment via DD. T-Mobile charge me a surcharge for NOT using DD. It's all a big con!

I've seen this before, I think it's something that the bank pays on our behalf as private customers.

The only time I've known extra be charged is if I've booked concert tickets using visa and they tell you that they will charge a 2% fee unless you use Switch or Delta. So it seems that VISA charge more.

I know that some companies such as Argos and Somerfield pay 2.5% of the purchase price of the product to another company (it should say on the receipt) but the price you pay stays the same. So if you buy summat for £100 with a card, £97.50 goes to Argos, and £2.50 goes to the other company. You still get charged £100.

Actually, the other company is usually part of the same group of companies - a tax dodge maybe ;)

But, what would happen if I paid by cash, would I be entitled to ask for this discount and would I be likely to receive it?

Good point! Haggle and find out ;)

Originally posted by Abby
Good point! Haggle and find out ;)


Haggling is not my style, but I would ask for the discount if I thought I was entitled to it.

Originally posted by Abby

Actually, the other company is usually part of the same group of companies - a tax dodge maybe ;)

I heard that they do this to avoid VAT on the 2.5% and there is currently a court case involving the Inland Revenue and one of the major companies.

Which major company is this? *cough* *cough* *debenhams* *cough* *cough*

Originally posted by Lickszz
Haggling is not my style, but I would ask for the discount if I thought I was entitled to it.

Yes, I know it isn't, which is why I recommended it :D

Originally posted by Lickszz
I recently paid for a item in a national DIY store. I Paid on my Debit card. I was given a customer copy invoice. When I got home I noticed there were some "conditions" attached, one of which was that I paid 2.5% extra for using my debit card. I checked with the store and was told don't worry it's included in the price. Now I am wondering if I would have got a 2.5% discount if I had paid cash? I am also wondering if this is happening in other stores?

take the item back and this time pay in cash and find out

Basically, credit card companies charge a percentage (or sometimes a fixed rate) for every transaction that a shop makes. The company would be well within their rights to charge you extra (as some do - e.g. ticket agents, travel agents, etc.) to cover their costs. The shops that don't do this are losing out. The reason it's on the receipt is just to bring it to your attention that you are costing them money!

"They" say that if people keep using credit cards to pay for things, everywhere will have to increase their costs to compensate. :?

Originally posted by Tony Ruscoe
Basically, credit card companies charge a percentage (or sometimes a fixed rate) for every transaction that a shop makes. The company would be well within their rights to charge you extra (as some do - e.g. ticket agents, travel agents, etc.) to cover their costs. The shops that don't do this are losing out. The reason it's on the receipt is just to bring it to your attention that you are costing them money!

"They" say that if people keep using credit cards to pay for things, everywhere will have to increase their costs to compensate. :?

It's just I didn't use a credit card, I used a debit card. I could have written a cheque, would they have charged me for that as well?

With the payment service provider we're with at work, it doesn't matter whether it's credit or debit card - we still get charged 1.5% or 40p per transaction (which was our choice when we signed up with them).

They could charge extra for using cheques to pay too, as it costs business accounts 50p for each cheque they pay (or at least that's what I was told by the bank when my old rock band wanted an account in our band's name)!

Interesting that the City Hall charge you 2% if you pay with VISA but no charge if you pay with Switch.

Originally posted by Tony Ruscoe
With the payment service provider we're with at work, it doesn't matter whether it's credit or debit card - we still get charged 1.5% or 40p per transaction (which was our choice when we signed up with them).

They could charge extra for using cheques to pay too, as it costs business accounts 50p for each cheque they pay (or at least that's what I was told by the bank when my old rock band wanted an account in our band's name)!
You can have a free business account with Alliance and Leicester so long as you stick to the guidlines. Which for a small business are a piece of... erm... pee!

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