5 ms·

The handling fee for credit cards is crazy high (more than 1%!), I can't believe that handling cash is more expensive.

by noja 8y ago

vixen99 8y ago
And a UK Mastercard used abroad (in the EU) attracts (nearly) 3% commission on purchases.
- nimish 8y ago
  That's a foreign transaction fee. Good cards will not do this. The actual interchange fee in the EU is closer to 0.3%.
  - noja 8y ago
    How is the interchange fee different from the merchant fee? Can I take cards for 0.3%?
    - nimish 8y ago
      The interchange fee is what's paid between banks. Your payment processor (Stripe, Paypal, Square, WorldPay etc) essentially act as middlemen who occasionally provide extra value. Depending on your volume and their product offering you could get interchange + pricing.
- leonagano 8y ago
  Revolut/Monzo/Starling don’t charge it
  - Symbiote 8y ago
    Also Halifax, Metro Bank, Nationwide if you prefer an older bank.
    - rahimnathwani 8y ago
      Metro Bank did a bait-and-switch. They attracted initial customers with the 'no foreign transaction fee' pitch and later started charging them 2.75%: https://www.metrobankonline.co.uk/bank-accounts/i-want-some-information-about/using-my-card-abroad/ https://www.metrobankonline.co.uk/bank-accounts/i-want-some-...
username90 8y ago
Not an issue in Sweden, there it is illegal to have any transaction fees on credit cards so cash will be at least as expensive.
- kickling 8y ago
  Its illegal to make the customer pay the transaction fee if they want to pay with card, but of course companies still have to pay transaction fees to The bank.
  - noja 8y ago
    What about Ryan Air?
    - Symbiote 8y ago
      The "booking fee" has been removed. I confirmed by taking a booking from London-ish to Frankfurt-but-not-really for £6.99 through to the payment screen, and trying a Visa Debit card number vs. a MasterCard credit card number. The price didn't change. https://www.ryanair.com/gb/en/useful-info/help-centre/fees https://www.ryanair.com/gb/en/useful-info/help-centre/fees
nimish 8y ago
You'd be surprised. Handling coins and bills, dealing with unexplained losses, hiring someone to transport it to/from the bank, the time taken to deal with counterfeits, not having money immediately after purchase... It all adds up.
lotsofpulp 8y ago
If you have businesses, not dealing with cash means you never have to deal with employees stealing cash, errors in counting and taxes, and very minute risk of your business being robbed (for cash). Could also result in more customers transactions since you can process them faster if you have a simplified payment stream.

The handling fee for credit cards is crazy high (more than 1%!), I can't believe that handling cash is more expensive.

by noja 8y ago

The handling fee for credit cards is crazy high (more than 1%!), I can't believe that handling cash is more expensive.

vixen99 8y ago

And a UK Mastercard used abroad (in the EU) attracts (nearly) 3% commission on purchases.

nimish 8y ago
That's a foreign transaction fee. Good cards will not do this. The actual interchange fee in the EU is closer to 0.3%.
- noja 8y ago
  How is the interchange fee different from the merchant fee? Can I take cards for 0.3%?
  - nimish 8y ago
    The interchange fee is what's paid between banks. Your payment processor (Stripe, Paypal, Square, WorldPay etc) essentially act as middlemen who occasionally provide extra value. Depending on your volume and their product offering you could get interchange + pricing.
leonagano 8y ago
Revolut/Monzo/Starling don’t charge it
- Symbiote 8y ago
  Also Halifax, Metro Bank, Nationwide if you prefer an older bank.
  - rahimnathwani 8y ago
    Metro Bank did a bait-and-switch. They attracted initial customers with the 'no foreign transaction fee' pitch and later started charging them 2.75%: https://www.metrobankonline.co.uk/bank-accounts/i-want-some-information-about/using-my-card-abroad/ https://www.metrobankonline.co.uk/bank-accounts/i-want-some-...

username90 8y ago

Not an issue in Sweden, there it is illegal to have any transaction fees on credit cards so cash will be at least as expensive.

kickling 8y ago
Its illegal to make the customer pay the transaction fee if they want to pay with card, but of course companies still have to pay transaction fees to The bank.
- noja 8y ago
  What about Ryan Air?
  - Symbiote 8y ago
    The "booking fee" has been removed. I confirmed by taking a booking from London-ish to Frankfurt-but-not-really for £6.99 through to the payment screen, and trying a Visa Debit card number vs. a MasterCard credit card number. The price didn't change. https://www.ryanair.com/gb/en/useful-info/help-centre/fees https://www.ryanair.com/gb/en/useful-info/help-centre/fees

nimish 8y ago

You'd be surprised. Handling coins and bills, dealing with unexplained losses, hiring someone to transport it to/from the bank, the time taken to deal with counterfeits, not having money immediately after purchase... It all adds up.

lotsofpulp 8y ago

If you have businesses, not dealing with cash means you never have to deal with employees stealing cash, errors in counting and taxes, and very minute risk of your business being robbed (for cash). Could also result in more customers transactions since you can process them faster if you have a simplified payment stream.