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Early settlement discounts - credit card surcharge

We offer a small early settlement discount but can we disapply this for clients who pay by cr. card?

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We offer a 2.5% early settlement discount to clients who pay their fees within 7 days. The vast majority of clients pay by BACS. However, annoyingly, some clients pay by credit/debit card on day 7 and this means that by the time the money reaches my account, the 7 days has expired. I therefore wish to exclude credit/debit card payments from qualifying for the discount. I must admit that I am also mindful of the costs involved when clients pay by credit/debit cards but want to avoid falling foul of the surcharge rules. I have checked the official guidance on the Consumer Rights (Payment Surcharges) Regulations but I cannot see that this particular issue is mentioned. Do readers know whether this would breach the Payment Surcharge rules?

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By Tim Vane
22nd Jan 2019 17:27

It is a breach of the regulations and covered in the guidance.

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Replying to Tim Vane:
By John R
22nd Jan 2019 17:47

Thanks. I assume you mean note 13 of the guidance but my discount is for early settlement not a "discount for use of a particular means of payment" so I am still not absolutely certain.

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By Tim Vane
22nd Jan 2019 17:56

It's not a discount for early settlement. It's a discount for early settlement by a payment other than a card. So it's a discount for a particular use of payment.

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By SXGuy
22nd Jan 2019 19:50

Discount for early payment should be on the basis of when funds clear. So cleared funds within 7 days. If paying by card allowing x number of days to clear to be eligible for a discount. No restriction on payment method, just a change to when discount applies.

Thanks (2)
Replying to SXGuy:
By atleastisoundknowledgable...
22nd Jan 2019 20:52

What he said.
Beat me to it.

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