IKEA to start charging 70p per transaction for using M/card / VISA credit card

If you pay with a 2% cashback credit card then you would still be 1.50 in profit on a 110 pound spend.

In message , D.A.L. writes

Lets see if they rigorously adhere to the Price Indications (Method of Payment) Regulations 1991 S1 1991/199

The extra signage may negate the benefit.

It looks like they've already started with the signs. There are loads all over the store informing customers of the change from 1st September.

I wonder if customers on the continent get charged for using their credit cards in IKEA shops.......

Doesn't it cost more than 70p to pay cash into the bank?

Usually, but quite a lot of businesses now pay cash into a post office for a GIRO account and to transfer the total daily amount to the main bank account. This was a cheap way for the POs to get cash for paying out on pensions etc.,, but as this method of payment is dying out it may not be as cheap as before.

And how much does it cost to get Securicor / Group 4 / whatever to take the money to the Post Office. That isn't free either.

Being an older (not old) fart, I remember when petrol stations introduced different pricing for credit cards in the late seventies. Wasn't this method of pricing outlawed? I thought everybody had the right to pay the same price, regardless of the method of payment?

John

Of course not, because it's not legal to surcharge on a UK debit card. I'll bet they would if they could, though!

There is one law still in place that allows for the surcharging of payments from a credit card.

In message , John Bishop writes

The Price Indications (Method of Payment) Regulations 1991reversed that rule.

Thats true. But my brief experience of IKEA didnt show many people paying in cash. I think its just an excuse for a rip off.

In message , Reece Bythell writes

What law is that?

70p RB>charge RB>> from credit card users has to be seen in context. The 70p charge compares RB>> against the £110 average amount spent by an IKEA credit card shopper RB>during RB>> a trip to an IKEA store. RB> RB>If you pay with a 2% cashback credit card then you would still be £1.50 in RB>profit on a £110 pound spend. RB>

Which cards offer 2% cashback?

Rgds

__ Richard Buttrey Grappenhall, Cheshire, UK __________________________

Another question.

At present, if they are like every other large retailer, they claim that around 3% of the purchase price is a card processing fee, and hence not subject to VAT.

If they charge a separate fee of 70p, then presumably they won't be able to get away with this and their VAT bill will increase by an average of 49p per transaction.

Budget Airline Ryanair charge 40p per passenger per leg for Switch & Delta card transactions. Nothing however for Electron card transactions which I don't understand why they have to be different.

Exactly the opposite in fact. The credit card companies tried to prevent the petrol stations dual pricing by enforcing a clause in their agreements which required them to charge the same price to all. As a result, legislation was introduce to make such clauses illegal in credit card contracts. The petrol stations were then free to charge more to credit card customers, although they haven't seemed inclined to do so since.

Chris

Without a hint of irony, Richard Buttrey astounded uk.finance on 22 Aug

2004 by announcing:

American Express (up to, that is)

When will that make it to court for a final decision if it's legit?

and if it's true that IKEA claimed they just up their prices!

Jim.

Just dug out an old Ikea receipt.

"Further to notices in the store, I agree to pay 2.5% of the total to Ikea Retail Services Ltd., as a handling fee. The total amount paid is the same however I pay."