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Paywalled, but the text below was visible. > Meloni, who was elected in September, is finalising her first budget, which is due to include a rule allowing shop

by hdesh 4y ago

Paywalled, but the text below was visible. > Meloni, who was elected in September, is finalising her first budget, which is due to include a rule allowing shopkeepers and businesses to refuse cards and demand cash for payments up to €60. I am really curious to know her justification for this move.

nguyenkien 4y ago
Privacy
toomuchtodo 4y ago
To pander to tax dodgers. If Italy wanted to avoid US credit card networks, they already have SEPA instant credit transfers, which the EU is pushing to make mandatory (versus an optional premium offering). https://www.europeanpaymentscouncil.eu/what-we-do/sepa-instant-credit-transfer https://www.europeanpaymentscouncil.eu/what-we-do/sepa-insta... https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_6273 https://ec.europa.eu/commission/presscorner/detail/en/qanda_...
- ThePowerOfFuet 4y ago
  I had no idea they were planning to make SCT Inst mandatory (which will also effectively eliminate the upcharge many banks engage in for it). Wonderful news.
tdeck 4y ago
Are businesses required to accept credit cards in Italy or is this a card network rule they're trying to circumvent?
- lvice 4y ago
  Business are currently required in Italy to accept cards. Some still do not, but they can get a fine for it.
  - tdeck 4y ago
    That's interesting. It's not the case in the US; many smaller places are cash only.
veeti 4y ago
What is the justification for requiring businesses to accept cards?
nousermane 4y ago
In addition to tax-dodging, or selling off-the-books, there is one other, small legitimate reason for a vendor, to avoid card payments: Most banks/payment processors would charge a fixed amount per small transaction. Amount varies a fair bit, but as an order of magnitute, say - €0.15 or something like that. This means customer that bought cup of coffee for €1.50 and insists on paying with a card, will cost vendor whooping 10% extra (it is not allowed for vendor to pass on card transaction cost to customer). For a larger purchase, €30, €60, and more - transaction charge is negligible, naturally.
- zelos 4y ago
  Cash comes with its own costs of course: from a quick google a shop paying cash into a business account pays 0.5-1% in fees. Plus issues with theft etc.
- unmole 4y ago
  The government subsiding the payment infrastructure seems like a better solution. This is what India does with UPI and Rupay. Of course it's debatable if it actually lead to an increase in tax compliance.
- rchaud 4y ago
  > For a larger purchase, €30, €60, and more - transaction charge is negligible, naturally. This is already the case. The status quo allows vendors to refuse card payments if the total is under €30.

by hdesh 4y ago

nguyenkien 4y ago

Privacy

toomuchtodo 4y ago

To pander to tax dodgers. If Italy wanted to avoid US credit card networks, they already have SEPA instant credit transfers, which the EU is pushing to make mandatory (versus an optional premium offering). https://www.europeanpaymentscouncil.eu/what-we-do/sepa-instant-credit-transfer https://www.europeanpaymentscouncil.eu/what-we-do/sepa-insta... https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_6273 https://ec.europa.eu/commission/presscorner/detail/en/qanda_...

ThePowerOfFuet 4y ago
I had no idea they were planning to make SCT Inst mandatory (which will also effectively eliminate the upcharge many banks engage in for it). Wonderful news.

tdeck 4y ago

Are businesses required to accept credit cards in Italy or is this a card network rule they're trying to circumvent?

lvice 4y ago
Business are currently required in Italy to accept cards. Some still do not, but they can get a fine for it.
- tdeck 4y ago
  That's interesting. It's not the case in the US; many smaller places are cash only.

veeti 4y ago

What is the justification for requiring businesses to accept cards?

nousermane 4y ago

In addition to tax-dodging, or selling off-the-books, there is one other, small legitimate reason for a vendor, to avoid card payments: Most banks/payment processors would charge a fixed amount per small transaction. Amount varies a fair bit, but as an order of magnitute, say - €0.15 or something like that. This means customer that bought cup of coffee for €1.50 and insists on paying with a card, will cost vendor whooping 10% extra (it is not allowed for vendor to pass on card transaction cost to customer). For a larger purchase, €30, €60, and more - transaction charge is negligible, naturally.

zelos 4y ago
Cash comes with its own costs of course: from a quick google a shop paying cash into a business account pays 0.5-1% in fees. Plus issues with theft etc.
unmole 4y ago
The government subsiding the payment infrastructure seems like a better solution. This is what India does with UPI and Rupay. Of course it's debatable if it actually lead to an increase in tax compliance.
rchaud 4y ago
> For a larger purchase, €30, €60, and more - transaction charge is negligible, naturally. This is already the case. The status quo allows vendors to refuse card payments if the total is under €30.