14 May Business owners card charge customers knowing the new governing rules stating it is now illegal.
(Angela Ansari)
Companies and business owners are still charging an additional card charge, for customers that are unaware the new governing rules implementing that it is in fact illegal.
A new governing rule is now suggesting that companies that charge customers an additional card charge on products is now considered being illegal. This decree stating that companies and business owners are to only charge customers what they pay for without any extra charges to make a profit. And that any company that does so will be penalised and warning will be set forth and if they then choose to disobey those consequences then overall the severe action will take place.
This law is regulated by the government suggesting that starting from the 13th of January 2018, the implementation of choosing to pay by card is now more convenient for customers and that you will not be penalised if choosing the option of paying by card. These new rules now imply that companies should only charge you what the total due of products is worth and that no profit should be made on these surcharges.
This new governing rule in states that not only are these rules implied in the United Kingdom but are now undergoing in the European Union. Card charges on debit, or any of the following American Express or any other company that is liked such as PayPal or Apple Pay is also a part of this scheme. This law is now more suitable for international as well as local individuals on their overall bill towards a company as some minor charges towards the total due of a product is a 2% card charge but for a substantial amount of total pay the additional card charge could increase by almost 20% on overall products.
But some business owners and establishments have not been following this law that was implied. Still charging the customer an extra card charge on their total pay knowing that suggested implementations that are now set stating that it is illegal. They still choose to make a profit from customers on their customers. Companies and businesses that are now continuing to charge the customer the extra amount on their card will not openly state around the cash register.
Before this law was governed shopkeepers and business owners were required to state that if there was an additional card charge it would have had to be stated around the counter and displayed on a form of paper, for customers to understand that requirements that would come with paying by card. All establishments were expected to keep the customer aware that there was additional cost if they were to pay by card.
This is a concept that not many shopkeepers are abiding by. Especially is any of these businesses are outside of the Central London area in East London alone a substantial amount of business owners still charges their customers an additional card charges aware of the laws stated. Shop keeper Raj Singh owner of the local off licence- Costcutter has openly admitted that he charged the additional card charges to his customers, knowing that there are governing rules stating that there is now a ban on doing so.
When asked Mr Singh about why he still chooses to disobey the laws implied his reaction did not seem pleasant stating, “This is my shop I can choose to charge a customer what I wish to do so if their overall bill does not meet my shops limits.” When asked why he does not provide a sign near the cash register and till area why there is no sign informing customers that there may be an additional card charge. His reaction was silent, Mr Singh aware of the laws set forth on the 13th of January implemented by the (The Revised Payment Directive (PSD2) declaring that for security reasons the method of an additional card charge is now ban.
Apprehending the rules now stated shop owner Raj Singh agrees that it may be unjust but as many people are unaware of this new law implied. He states it is an additional income source for his business and since the law decree was set not a single person has approached him about this governing rule. And that most people happily pay for their products with an extra charge on their card as the off licence is in a suburban housing neighbourhood where not many other shops are nearby, making his establishment highly reliable on locals for a quick run to get basic items.
Gradually these charges overtime add up to a substantial amount. And for the people whose hard-earned money is being sleazed their way to paying an additional cost is immoral. When speaking to a single mother of 3 whose highly dependent on her local Costcutter for essentials for her children such as nappies and baby food products she states that “Having 3 kids I never get the time to take cash out and as going to my nearest ATM is quite far from where I live, getting essentials from the local Costcutter is my only quick source and if that means I must pay by card each time, I don’t find there any other option. Knowing I am getting charged and ripped off saddens me but, having children is it very difficult to get out the house.”
As this story on the card charge did not make headlining news like the local off licence Costcutter many other businesses discreetly hide the idea that there is an additional card charge. Business owner Sebastian Rodrigues to one of East London’s well-known pizza shops Top Pizza has a 24-hour pizza place right next to a local nightclub. His establishment is at its peak in his career as it is always filled with customers especially after hours when people choose to make a stop from the night club to his pizza place.
Mr Rodrigues states that “Although I know the implementations of an additional card charge are now ban the concept is one I cannot agree too.” He adds furthermore that “charging customers an additional card charge is what runs my business I don’t have a fixed rate I choose to charge the customers what I will. And that most customers that appear after hours from the nightclub, happily pay these charges.” As there are not many people that are aware of this governing rule business owners are aware of the lack of media coverage on this news story.
And try to take advantage as much as possible. Some shopkeepers take their additional charges and can be up to as much as £5, on items that would have costed you way less then what you were to pay by card. Top pizza owner Mr Rodrigues has made almost £300 this week alone on a basic card charge which ranges from 50p to £5 he also states, “I judge a customer off appearances if the individual seems wealthy enough I would charge the maximum card charge rate, and if there is usually a female customer the minimal additional card charge rate would apply.”
This governing rule was initially instated due to fraud and hacking purposes establishments, businesses and companies will not charge an item based on a barcode so that it would appear on a bank statement but instead add on additional amounts manually so that it will not. It is also in the hand of the individual whose business it may be to add on however much they will for their own personal benefits.
When paying by card at a local shop or business that is not certified as a well-known service that is strictly obeying by company morals and policies. When paying for an item, the customers bank statement is most likely to appear as a digit code stating how much you would have spent at the business or merely appear as (ticket machine) on a statement. This then makes what establishments are doing unjust as there is no fixed card charge.
This is now classified as a concept of fraud, when scamming customers for additional money for personal reasons. The idea that business can charge amounts fitted to their needs. It is misleading to the customers who are unaware of themselves being cheated in to paying more for what they due.
The laws implemented now state, that any business and company that charge an additional card charge to customers will face a warning and if they then after that warning still choose to disobey the law that was stated will face a severe fine. As well as be taken to court and overall could affect their business, consequently facing the owner to revoke them of their business licence and force close the establishment, if the owner does not seem to cooperate with the laws that were clearly implied.
This is a policy that most business owners and establishments should consider seriously before asking a customer to pay an additional card charge as the rule implemented is not just a suggestion where business pick when convenient for them. but in fact, a law that is stated as being illegal and a snow considered a crime to unknowingly charge customers an additional amount when choosing to pay by card.
