Filenews 23 June 2021 - by Eleftheria Paizanou
Some businesses are already transferring to consumers the commission that companies receive for accepting, clearing and settling card transactions when purchasing specific products with plastic money.
The phenomenon has been observed in recent months due to the coronavirus pandemic, where the need for contactless transactions has led many businesses to accept credit card payments. Some businesses, especially those with low turnover, due to the small profit margin they have when paying for certain products such as cigarettes, telephone cards, milk, newspapers and magazines, transfer the supply of credit card clearing companies to consumers, imposing additional charges on them. The profit margin specifically for these products ranges between 2-4 cents.
Citizens complained to "F" that there was a case of a consumer who bought cigarettes and because he paid by credit card he was charged an additional 20 and 30 cents a pack. There was also another case where the store charged the consumer an extra 30 cents when he bought the phone card by credit card. It is worth noting that there are businesses that have a posted sign in the store informing consumers that if they buy cigarettes and phone cards via credit cards they will be charged an additional fee. There are also businesses that do not accept credit payments for these products. POVEK Secretary General Stefanos Koursaris told "F" that it is illegal for some companies to pass on the cost of credit cards to customers.
Fears intensify
However, due to the implementation of the legislation that from 18 September onwards will make it compulsory for businesses to accept the credit card from 85 economic activities, there is concern that credit card charges will be passed on to consumers. Something that the organised professional associations who support this reject is illegal. The president of the Association of Permanent Service Stores (SYKADE) Andreas Theodoulou rejected what is said about transferring the cost of the supply for certain products to consumers. As he said, in the case of companies with low turnover, they can negotiate with clearing and card trading service companies in order to find an advantageous solution. According to Mr. Theodoulou, due to the coronavirus pandemic, plastic money has entered our lives for good.
No penalties provided for
It is worth noting that there is no legal framework to penalise those businesses that impose extra charges on consumers when paying with credit cards. In addition, the European Directive on the provision and use of payment services and access to payment systems states that 'a charge shall in no case be imposed for the use of payment instruments to which interchange fees are applied under Chapter II of Regulation (EU) 2015/751 or for payment services governed by Regulation (EU) No 1782/2003'. 260/2012». It should be noted that the Central Bank is responsible for the control and supervision of companies providing acceptance, clearing and settlement of card transactions.
Exceptions are sought by small businesses
At the same time, small businesses and kiosks are very sceptical because of the widespread use of credit cards from next Autumn. They argue it will increase the operating costs of specific professional groups in small businesses. POVEK Secretary General Stefanos Koursaris speaking to "F" said that for some products such as cigarettes, phone cards, milk, newspapers and magazines there is little profit margin for entrepreneurs. As Mr. Koursaris said, "with the compulsory acceptance of the credit card, the minimum profit margin evaporates by making small businesses loss-making". At the same time, the SG of POVEK expressed its concern about the charges, equipment costs and commission that credit card payment service companies will pay, pointing out that there is an oligopoly in this sector. In the coming days, POVEK is expected to send a letter to the Finance Minister requesting that some products (cigarettes, phone cards, newspapers, magazines and milk) be removed from card payments. At the same time, they will propose that for purchases up to €10 businesses should not be obliged to accept credit cards.
