Banning Card Payment Surcharges - B2B

Card Payment Surcharges B2B Legislation

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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?

Replies (13)

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Replying to Cheshire:
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By Dave_wales
16th Apr 2018 19:56

Thanks, I read that one but it didn't say where in the legislation it discusses B2B. Just want some evidence to back up anything we do.

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Replying to Accountant A:
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By Dave_wales
16th Apr 2018 19:53

Thanks for the sarcastic reply, trolling people really isn't useful to anyone.

I have searched google and also this forum but no one seems to reference the actual legislation and reading through it I can't see any explicit exclusion, so I was hoping someone may be able to help.

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Replying to Dave_wales:
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By Cheshire
16th Apr 2018 20:20

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?

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Replying to Cheshire:
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By Dave_wales
16th Apr 2018 20:56

How patronising to assume I am not an Accountant (as I am) but I am not an expert in payment surcharges and thought someone on here might be. The article you referred to didn’t answer my question as to what drives the exclusion - type of payment or type of customer, my customers pay with Personal and Corporate credit cards but all are businesses. The link you sent is exactly what I was looking for so thank you for your help, I spent a while searching through the legislation but was obviously searching poorly, I bow to your greater knowledge..

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Replying to Dave_wales:
Francois
By Francois Badenhorst
17th Apr 2018 09:49

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

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Replying to Dave_wales:
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By Mr_awol
17th Apr 2018 10:31

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.

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Replying to Mr_awol:
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By lionofludesch
17th Apr 2018 17:13

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.

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Replying to lionofludesch:
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By Cheshire
17th Apr 2018 19:24

lionofludesch wrote:

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.

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Replying to Cheshire:
RLI
By lionofludesch
17th Apr 2018 22:03

Cheshire wrote:
<

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.

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RLI
By lionofludesch
16th Apr 2018 17:41

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 ?

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Replying to lionofludesch:
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By Dave_wales
16th Apr 2018 19:55

That is true, it acts more as a disincentive for us to encourage customers to pay by faster payment. Some customers pay £1,000s by credit card so the fees can be relatively high.

You are right though, they are on the way out so may be worth scrapping them, just not advertising the fact!

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