About credit card fees?

[tabletriyt]

Posting here for traffic, shamelessly but it's semi-urgent.

I am in the process of paying a photographer for my wedding. The cost is £2k.
We received the deposit invoice today and T&Cs. The T&C state that they will charge 2.5% on all credit and debit card transactions but there is no option to pay by cash.

My DP is saying it's illegal. I've done a quick google and it seems to say that it's only illegal to charge more than they are being charged by the bank.

Can some one clarify?

Why would there need to be an option for cash? Surely just hand it over ?

As in we aren't allowed to!

I thought that this had been stopped?

In the past companies used to charge this extra for paying by credit card (online and by phone)

Fees like this were banned last year but some places are still trying it on
www.google.com/amp/s/www.bbc.co.uk/news/amp/uk-england-46876577

Charges were banned ages ago:

www.moneysavingexpert.com/news/2018/01/cards-fees-to-be-banned-from-saturday/

Can you do a bank transfer?

MSE seems to think it's not legal (www.moneysavingexpert.com/news/2017/07/credit-debit-card-fees-to-be-banned/)

But I still see a lot of places doing it; and I suspect it may be the case that you can report them but it's not an instant investigation.

Whilst irritating it's only an extra £50, are you really that bothered?

I'm completely out of touch but £2k for photos seems incredibly expensive.

This is what we're questioning. The woman seemed shocked that this wasn't legal as they've 'not been told anything' and asked for my help to inform her i.e. passing on articles.

I read MSE and it says
From Saturday 13 January all surcharges for paying via credit or debit card will be banned – this includes payment methods linked to your card, such as PayPal or Apple Pay. Companies are still allowed to levy a surcharge if you opt to pay by cash or cheque.

Isn't a surcharge the excess?

It’s illegal if you are in the UK. Has been for a while now. Google “credit card surcharges”
A company cannot issue a surcharge that applies only to payment by credit card. It’s been illegal since Jan 2018

The photographer is probably trying it on. After all, if you're crazy enough to pay £2k for photos of one day, then you're probably foolish enough to pay 2% on top for paying with a credit card. I just hope you're loaded and have plenty of savings to justify such crazy spending, as otherwise you might live to regret spending so much in the one day if you run into any financial trouble in the future.

@chuttypicks It is irrelevant whether or not I can afford it or justify it. It's my money, but yes, I am wealthy enough to afford it. The issue is whether someone is breaking the law.

Thanks everyone for clarifying, I thought it was but began to doubt myself. I look forward to her changing the wording to 'service fee'

Whilst irritating it's only an extra £50, are you really that bothered?

That isn't the point. If the photographer seemingly offers no other payment options, why should a customer pay a surcharge to use a card? Anyway, they presumably can take other forms of payment, but are probably hoping wedding parties will just pay anything to get what they want.

A company cannot issue a surcharge that applies only to payment by credit card. It’s been illegal since Jan 2018

Ahhh that may be it. If this is correct and they charge 2.5% on credit and debit cards, then they're not breaking the law because they're not applying a surcharge to only credit payments.

Can you pay by BACS transfer?
But yes they should not be charging you extra.

As a small business I refuse credit cards now that we aren't allowed to charge. The credit card company charges us 2.5% (depending on provider), and won't transfer the money to us for a month. Debit card charges however are processed within a couple of days and have a much lower cost.

@Itsreallymehonest - not wanting to de-rail thread but that sounds really bad, who do you use for your Merchant Services? We are also a small business and do accept all card payments (except Amex as fees too high) and all of out credit and debit cards transactions are pushed through in about 48 hours. We are with First Direct Merchant Services - might be worth a look if you're not tied into a contract (and we use Chip and Pin Solutions for the card machine, the rates are quite competitive too)