A new 3 cent charge on card transactions from a global payments’ provider is bad news for small businesses and consumers, a Fine Gael general election candidate has said.
Councillor Naoise Ó Muirí, who will be running for Fine Gael Dublin Bay North, hit out at the payment services provider, Elavon, who are introducing the charge on November 1st.
Ó Muirí said the move is “less than transparent,” noting that Elavon are one of the world’s main payment service providers.
“Elavon is issuing a notice to businesses to advise them that a transaction fee of 3 cents will be charged from November 1st. This, they say, is to mitigate against an increased cost base in the payments industry and to ensure businesses have access to the latest security measures.”
“I fail to see the justification for this charge, given that service users already typically pay for services via their bank merchant service offerings. Businesses are essentially being asked to pay on the double to use a payment service and they will rightly ask why,” he said.
“The SME sector is the backbone of the Irish economy, employing over two-thirds of workers in the country, but it has faced challenges in recent years.”
Advertisement
“I know from experience that running a small business in Ireland brings challenges as well as opportunities, and some sectors have been particularly impacted by global events and changes in legislation. That is why this back door transaction fee is unacceptable.”
He said that the costs will be passed onto the consumer.
“Business is about being competitive. If costs rise, businesses have to ensure their profit margins remain viable, so it’s inevitable that over time, additional costs will be passed onto the consumer,” he warned.
“As an example, a packet of chewing gum retails at about €1.30. Most consumers, including our younger ones, don’t think twice about tapping their card to pay for a packet. But that cost ratchets up if the retailer incurs a charge of 3 cents every time that card is tapped. It is also unclear if the charge will apply where consumers use Google Wallet/Apple Pay to tap for payment.”
“It’s disappointing to see Elavon introduce this charge in this manner and without a detailed explanation about why it is required. Businesses and consumers deserve transparency on this and to know if other payment services providers intend to follow suit.”
This post was originally published on here
