The Government today announced the scrapping of credit card & paypal surcharges, likely to hit many retailers and travel operators faced with a choice of absorbing the cost or increasing prices.
This comes at a time of significant change in the banking sector, including something called PSD2, which will allow new entrants to the financial market. Potentially this could include retailers themselves, offering new payments vehicles which could tie to loyalty programmes. Benefit for retailer - faster and cheaper payment processing, plus increased data access for enriched view of customer to enable more tailored value add services. Benefit for customer - depends on what the retailer chooses to make available as a reward, but potentially cashback or non-monetary incentive.
everis are working with a number of high street banks in the UK & the rest of Europe to implement the PSD2 regulation (locally called CMA9 Open Banking UK). everis is also starting to engage with leading European retailers to explore the opportunities it creates for them.
Consumers are no longer to be charged extra for paying by debit or credit card, the government has said. From January next year, businesses will not be allowed to add any surcharges for card payments. The worst offenders currently are airlines and food delivery apps, and small businesses which typically add a fee for cards. In 2010 alone consumers spent £473m on such charges, according to estimates by the Treasury. It follows a directive from the European Union, which bans surcharges on Visa and Mastercard payments. However the government has gone further than the directive, by also banning charges on American Express and Paypal too. Campaigners welcomed the move, saying it was great news for consumers.