Card charges ... ok?

Who isn’t classed as a consumer?

Didn't find your answer?

I don’t take takes, but am considering it, so I’ve been reading the Consumer Rights (Payment Surcharges) Regulations, wrt b2b card charges. 

Charges can’t be recharged to consumers, which is fine. Per the Regs:

 “consumer” means an individual acting for purposes which are wholly or mainly outside that individual’s trade, business, craft or profession;

Is a director paying for his/her tax return a consumer? A landlord paying for their accounts & tax return? I assume that everyone I’m likely to bill is NOT classed as a consumer?

It would be good to know whether other people pass card charges onto their clients. 

Thanks 

Replies (8)

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Melchett
By thestudyman
06th Aug 2018 00:56

Its just too much hassle to substantiate.

The easiest solution is just not to charge at all, or charge an "admin" fee no matter the payment.

Or simply build a potential card fee in your price.

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By Mr_awol
06th Aug 2018 08:19

I only take cars fir overdue accounts - on which I can add a ‘late payment fee’ if necessary.

Generally though, it’s better to swallow the fee and avoid a bad debt or instalment plan

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Replying to Mr_awol:
ALISK
By atleastisoundknowledgable...
06th Aug 2018 08:29

Mr_awol wrote:

I only take cars fir overdue accounts - on which I can add a ‘late payment fee’ if necessary.

Good call.

I’m in a quandary; I’m getting new ppl set up on GoCardless, but I’ve no way to make them do it, other that not working for them until they have done. Also I’ve some (eg annual) clients who won’t sign a DD, so wanted to have a card option, the charges on which are significantly higher than GC.

I think that I may have Stripe payment in the invoices for clients who aren’t on GC & swallow the fee, as suggested above.

Thanks (1)
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By Cheshire
06th Aug 2018 08:52

You can charge when folk use a commercial card, although if it's a cardholder not present jobbie then to extract that kind of information you would need just to ensure the right question is included with the rest of the information collected for all card payments. Probably won't be that many.

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Replying to Cheshire:
RLI
By lionofludesch
06th Aug 2018 11:07

The problem is - how can you tell unless you see the card ?

A lot of the convenience goes once you do that.

Personally, I'd take the fee. I can build that into my costs if I know about it. And adding on a surcharge doesn't help customer relations, as any airline will tell you.

Thanks (2)
Replying to lionofludesch:
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By Cheshire
06th Aug 2018 11:14

Hence why I said you would need to ask.

Personally I wouldnt bother neither, as you say just build it into costs.

But thought I would make him aware, it is an option after all.

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By ohwhatnow
08th Aug 2018 11:51

i was advised that its dependent on the card used. if its an individuals (personal) card then no fees can be charged - if its a commercial/business owned card then fees can be levied. Even if someone purchases items for a business on their personal card (to be reclaimed as expenses) its still no fees.
its the card itself that dictates, not the person buying and not the nature of the transaction.

Thanks (1)
ALISK
By atleastisoundknowledgable...
08th Aug 2018 11:52

All sounds too much like hard work.
Looks like I’m swallowing the fees.

Thanks (2)