PayPoint has warned stores using its Counter Cash service to avoid card-merchant fees are at risk of having the service removed from their shops.
Last week, a customer attempting a card purchase in an unidentified local shop suggested the retailer had instead rung through a cash transaction and then processed a cash withdrawal for the equivalent amount using PayPoint’s Counter Cash service.
The method not only swerves all card-merchant fees, but also earns the store a commission for providing the PayPoint transaction.
Not permitted
When asked about the practice, a spokesperson for PayPoint told Better Retailing: “Processing card sales as Counter Cash transactions is not permitted by retailer partners offering the service and this is made clear in our terms of business. We monitor to assess whether this is taking place across our network and, in the small number of instances where it is, the retailers in question will have the service removed.”
Retailers told Better Retailing they use the process and a similar one through the Post Office to continue taking card sales in instances where the card machine is not working. “We always notify the customer when doing this as it’ll show as a cash withdrawal on the customer’s bank statement,” one shop owner explained.
“Also, customers are forced to put their PINs into the machines for cash withdrawals.”
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