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Dublin: 19 °C Thursday 6 August, 2020

Credit and debit card fees for retailers have just been halved

It remains to be seen whether businesses will pass the savings onto customers.

Image: Shutterstock/LDprod

ONE OF THE FEES banks charge retailers for processing debit and credit cards is being halved from today.

The capping of “interchange” fees could save businesses over €36 million a year, according to the Department of Finance.

The charges do not impact consumers directly, though they might affect them indirectly through higher prices and a reluctance on the part of retailers to accept card payments, the department noted in a statement.

The maximum fee for domestic debit card sales is being set at a weighted average of 0.10% of the transaction value, half the current level, while the maximum for domestic credit card transactions is being cut to 0.30%.

Call to end ‘minimum spend’

Minister for Finance Michael Noonan said the measure, which was first announced in Budget 2016, will reduce the cost to retailers who accept card payments.

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Noonan also called on retailers to now remove the “minimum spend” on cards.

“We are all familiar with outlets who will not accept card payments under €10 or in some cases €5,” he said.

“Retailers should be aware that most shoppers have a contactless card in their wallets which can be used for transactions up to €30,” Noonan added.

It is cheaper and faster than any other way to pay, both for the retailer and the consumer.

Read: Here’s why ‘Culchie Shopping Day’ is now like any other

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About the author:

Catherine Healy

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