Please could someone direct me to where in the Payment Surcharges legislation it excludes B2B transactions. All of our customers are B2B and, although some may be small business that pay by personal credit card, I believe we are able to charge for using debit/credit Cards up to our actual cost. I am just struggling to find the exact part of the legislation that either says it only applies to B2C or excludes B2B and I am starting to doubt whether what I have read on forums is correct..
Question 1: Are B2B transactions specifically excluded? If so, where in the legislation does it say this?
Question 2: Is it the method of payment that determines whether the legislation applies or who the customer is? i.e. if a sole trader pays using a Personal Debit card, are we able to apply a Surcharge?
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Love the way you are not an Accountant yet use this site to free load, then criticise a valid forum user for stating the obvious resolution.
It's pretty damned obvious from the link I sent, One clue is in the title, but if you can't be bothered reading the whole thing, try this instead http://www.legislation.gov.uk/uksi/2017/752/schedule/8/paragraph/12/made
Or do you want us to tie your shoes laces as well?
MOD POST:
Morning guys, can we please keep it friendly. Dave, if you've gotten everything you need from Cheshire, then you can likely terminate the conversation with them.
Thanks,
FB
Dave,
Cheshire's point (that you've missed so far) is that the legislation specifically applies to 'consumers'. Whilst you are looking for a set exclusion for businesses, Cheshire's point is that you wont find it because it doesn't need to be there. It is like having a law about cats, specifically cats and only cats, and you asking for us to guide you to the point where dogs are excluded from the rules.
That said, and without giving you credit for realising this (because I don't think it is the reason for your query) there are actually some consumer rights which apply to businesses - for example the consumer credit act doesn't apply to limited companies but does apply where a sole trader signs a contract for services on behalf of their business.
So this is how we get to the position whereby you can charge a businesscard user the fee but not a sole trader using their own personal card (or, arguably, even a limited company director using a personal credit card). It is because the businesscard is not subject to consumer legislation (by the way, this means that you also don't get purchase protection under the s75 of the Consumer Credit Act, something many people don't real). The problem, as pointed out by another poster, is that you might not always no (particularly for internet or telephone payments) whether it is a personal or business card which is being used.
Bottom line is it's about the status of the card and not about the purchaser of the goods or services.
Unfortunately, there's no way a supplier can tell whether a card is business or personal.
Unfortunately, there's no way a supplier can tell whether a card is business or personal.
Quite a lot of cards do state on them that they are business/corporate cards or indeed have the business names, albeit I accept not all do. When dealing over the phone of course its not a standard Q in the usual card processing formats to glean such info.
<Quite a lot of cards do state on them that they are business/corporate cards or indeed have the business names, albeit I accept not all do.
Fine if you see the card but - as you say - payments can be taken over the phone. Who wants to look a fool when they have to say "Oh, I can't actually charge you this credit card fee. I'll have to waive it or not get paid at all" ?
No thanks.
Personally, I think they're on the way out.
You can't be sure that you're charging a business card. Why take the risk for a few quid ?