Ongoing card surcharging sees high street shoppers cancel transactions worth 10bn
UK consumers have started to walk out of high street stores upholding card surcharges ahead of the incoming January ban, new research has found, with one in three having abandoned a transaction mid-sale since the summer.
As of January 2018, retailers will be banned from charging fees for credit and debit card payments, a move which has polarised opinion on the high street. Many fear they will have to absorb the typically high costs many payment terminal providers charge, while some have suggested small retailers will benefit from no longer having to pass the cost of card surcharging on to customers.
According toresearch undertaken by Paymentsense, shoppers have already voiced their disapproval of ongoing card surcharging on thehigh street, with many business owners reluctant to adjust transaction fees before the ban is introduced.
Out of 1, 000 consumers, 42 per cent hadexperiencedno change in surcharge fees on the high street.
In London, fewer than a third of shoppers had noticed small retailers and food outlets had dropped charges, with the figure even lower elsewhere.
Only a fifth of consumers in Manchester had seen card surcharges removed, with the same number in Birmingham. In Bristol, just 15 per cent of shoppers noticed any change.
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Nationally, over a third of shoppers claimed they had subsequently walked out of a shop mid-purchase having encountered a surcharge fee since the ban was announced in June. Again, this intensified in the capital, with 41 per cent cancelling a sale.
Overall, just eight per cent of consumers across the country said they would still pay a surcharge fee, while one in four would not return to a store upholding transaction costs.
To gauge how much small high street businesses had lost due to shopper walkouts, Paymentsense put the 135m monthly card spend with small businesses up against the walkout rate. In total, storescould havelost out on as much as 10bn in sales.
Commenting on the findings, Guy Moreve, head of marketing at Paymentsense said the early issues faced by retail owners could soon be resolved.
we believe the upcoming change will help small businesses as well as consumers. Shoppers previously affected by a potential surcharge are likely to see a saving of between two and three percent per card transaction, ” Moreve explained.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
The surcharge ban on debit and credit card payments has polarised many independent businesses. Some fear the ruling will have a knock-on effect, resulting in a financial squeeze as retailers attempt to absorb card terminal providers' typically high costs.