BRC: credit card payments costing shops too much
Chip & PINCredit card customers could be paying out more, because banks are charging shops too much for accepting their payments.
That’s the view of the British Retail Consortium (BRC).
It says banks charge up to 17 times more for retailers accepting payment by credit card than it does for cash payments.
An average cash payment costs a shop 2.4pence, paying on a debit card will cost 8.5 pence while transactions of credit cards cost on average 34p according to the industry body.
It believes customers could save a total of £480m if lower charges were introduced and passed on.
BRC is calling on the government to look into the situation.
Director general Stephen Robertson said: "With payment technology and efficiency developing, card charges should be going down not up”.