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Stores unprepared for card charge ban

Independent stores are still charging customers for small card transactions, despite a ban on card charges coming into force on January 13.

Independent stores are still charging customers for small card transactions, despite a ban on card charges coming into force on January 13.

Nearly half of all consumers have noticed no difference in the number of independent shops charging for card payments in the run up to the ban. In London, less than a third have noticed a difference.

Despite research by payment provider Paymentsense also showing that one in three customers are now walking out instead of paying a card charge, many local shops are struggling to protect margins on small transactions without the additional revenue.

Harvinder Nagra from Nagra Supermarket in Rugby said the ban on card charges will cost his store more than £2,000 a year. “I don’t know what to do. We’re moving to cash-only for large bill payments, but it’s difficult to tell customers that different goods have different payment rules,” he said. “With so much price-marking it can be hard to absorb the charge into our shelf prices.”

Other retailers told Retail Express they were unaware of the law change and some said they plan on breaking the ban, which will be enforced by local trading standards departments. The cost of card transactions also varied by as much as 300% from retailer to retailer.

Surjeet Singh Notay from Notay Convenience store in Hull told Retail Express: “You have to renegotiate with your provider. We have and have removed and surcharges from all credit and debit transactions.”

Andrew Howell from Loch Lomond News West Dunbartonshire added: “We don't charge, but set a minimum spend of £3. We are flexible with this, but it can help increase customer spend.”

Do it: Find out more about the ban

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