Sunday, February 28, 2016

Tariff Update...As Clear As Mud. Credit Card Surcharge Change?

Driver to pay Credit Card surcharge from April???


I spoke to LTDA Chairman Steve McNamara on Wednesday and in that conversation he informed me (in his opinion) the argument over surcharges is irrelevant as rules governing CC transactions including surcharges, may well be change in 2017 due to an EU directive. 

The information is actually contained in the results from TfL's consultation on Credit Card Payments.

The actual wording states:
The current surcharge of up to 10 per cent is generally felt to be too high, but the Consumer Rights (Payment Surcharges) Regulations 2012 already bans excessive surcharges and traders, including taxi drivers, may not charge more than it costs them to accept card payments.

This is pretty clear so far and quite understandable.

The report continues to say:
It is also expected that future legislation (Following adoption by the European Parliament of the Revised Directive on Payment Services), will remove most card payment surcharges when it comes into effect which is expected to be by end of 2017. 

The statement is unspecific as to which "most card payments" are referred to. 
Also, this may not happen,because by 2017, we may no longer be part of the EU. 

So why are TfL pushing for something so strong, that may never happen?

Until this actually happens, why should we even consider passing CC payment surcharges over to the driver?

How would this 2017 European consumer rights regulation affect us here in the UK?

This will mean retailers will not be able to charge cc customers the surcharge or service charge. 
This will include paying bills, booking theatre tickets, shop purchases and the like of us. But most retailers will build this into the retail price of the goods being sold.

TfL have offered us a 20p extra to the initial meter drop, but that was based on a CC surcharge capped at 3%. 
Now we are told that the Card clearing companies have turned this down and TfL are going to let market forces set the rate.

Why is there such a lack of information from our orgs about what is coming in April, in regards to CC surcharge payments?

Is this another example from TfL's spin doctors of while we are tearing into each other over this, something else more controversial is about to slip under the radar. 

Perhaps TfL feel that if we are arguing about something that's possibly inevitable, we won't be resisting the  unenforceable CC mandate -about to be tested in court I hear- or the unnecessary fitting of equipment in the rear.

The way TfL have tried to bulldoze this through based on their consultation is nothing short of scandalous. 

This whole issue has been a complete mess from start to now and has been handled dreadfully by the Orgs/Unions, suppliers and TfL.

Too many vested interests looking at grabbing larger market share, stirring the already muddy waters. 
A complete  

The TfL consultation result recommendations should be based on majority of opinions from those who responded. It's clear that this is not the case.

It's alleged TfL are trying to manipulate the conclusions by making the results unclear. 

See for yourselves and make your own mind up: