SMEs are paying the price of the ban on card payment surcharges that’s due to come into force on 13th January next year.
It’s estimated the cost of card surcharges in 2010 totalled £473 million. The payments have been described as “rip-off card charges” by the government.
We may be just a month away from the deadline, but many small businesses and retailers are yet to enforce the ban according to new research which reveals that more than 4 in 10 shoppers are still faced with a fee for making a card payment.
The study by Paymentsense also found well over a third (37%) of shoppers have been walking out when faced with a card surcharge, since the ban was announced. This figure was even higher for those in London (41%). Across the country, only 8 per cent of consumers surveyed said they still pay surcharges.
According to the study, average card spend with small business nationally is £135 a month. This means since the ban was announced, surcharging SMEs have missed out on a share of around £10 billion in consumer spend.
A quarter of shoppers would also not come back to a store making surcharges. This was even higher in Manchester (30%).
Guy Moreve, head of marketing at Paymentsense said:
“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.
“Our study also highlighted that SMEs across the country have lost revenue and customers by maintaining card surcharges, after the ban was widely announced. However, after January 13, everybody will know where they stand, and the days of surcharge-related walkouts will be gone. This can only be a good thing for the UK’s small businesses.”