Switch to an accessible version of this website which is easier to read. (requires cookies)

Retailer payment charges are ‘yet another bank rip-off’ says Assembly Member

July 21, 2011 4:08 PM
Originally published by Peter Black and South Wales West Liberal Democrats

Regional Welsh Liberal Democrat Assembly Member Peter Black has weighed in on the side of small retailers in South Wales West over the amount the banks are charging them for processing credit and debit card payments.

Mr Black was speaking after the findings of the British Retail Consortium latest annual payments survey, which showed that  the average charge for processing a credit card payment was 37.1p, making up 44.5% of retailers' payment costs despite only accounting for 10% of transactions.

Mr. Black said: "There are many small and medium sized businesses on main streets throughout our region which are battling to stay afloat. We already know that the banks have deliberately dragged their feet so far as lending to real businesses goes - their own figures admit that. Now we can see just how much of a help they are prepared to be elsewhere.

"According to the British Retail Consortium, each card transaction is costing their members 37.1p in fees to the banks. "Unless the banks can prove this cost is fair, and not simply inflated to boost their profits, people will rightly see this as yet another bank rip-off.

"With retail sales on the High Street flat, and a huge 24.4% growth in on-line and mail order sales our local shops need all the help that they can get. That is why the Office of Fair Trading should look at this issue urgently.

"It isn't good enough for the banks to carry on expecting consumers, councils, manufacturers, and the retailers themselves to sort things out while they sit back and make fat profits. If they won't help voluntarily then Ministers should act to make them."