Being an entirely online business we take all of our payments online - and over the last 18 months we've been hit by successive increases in the costs of credit card transactions - each transaction costs us around 3.5% of the gross payment (including the VAT) and the percentage has increased steadily. It's always amazed me how much public discussion of credit cards only talks about the interest rate charged to customers and ignores the fact that the banks now take a cut on almost every retail transaction in the UK.
This morning I've had yet another letter from my 'friendly' bank saying that any transactions on premium cards will cost an extra 0.7%.
This is affecting all retailers, on and off line - so if you want to keep your money out of the banks clutches please avoid the premium card - and you'll be helping the retailers too.
2 comments:
Do you know which cards are PREMIUM CREDIT CARDS?
according to the bank 'these are typically issue to high net worth individuals and offer additional features such as no pre-set lending limits and exclusive reward programmes. ' They claim less than 2% of cards qualify but since people pay for the privilege of having the cards you do wonder why they want paying twice.
Apparently if you pay your car tax by credit card DVLA charge you an extra £2.50 to cover the processing fee!
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