Echecks, Shopify & other shopping carts, payment processors, gateways, etc. Discuss how to improve conversions, reduce abandoned carts and how to recover sales from within your cart, etc.

Moderator: Bernie from RV'ing in Western USA

#1392978 by Fiona A from Aglish
Wed Feb 21, 2018 12:42 am
Just wanted to find out how others are coping with the recent changes in the EU to the rules for credit card fees. If you read/believe what's being reported in the press then finally the "rip off" credit card surcharges are being scrapped. In reality they are not being scrapped, the small business owner is having to pay them to the "banks" instead of the client. This means that many small online businesses are having to pay clients charges for paying by credit card and have no way of recouping the costs. If the client pays by bank transfer THEY pay the bank charges, if they pay by credit card WE now have to pay the fees. If the small business works on a commission basis then its not possibile, as suggested by the press that the cost of the "product" will rise.
The actual rules are a nightmare to understand, our card processor can't explain them and they've also just announced that they are increasing their charges!! The end result will be twofold, - firstly companies will not accept credit card payments (or put a limit on maximum payments). Secondly - the card companies will increase their fees (as they are already doing), because of the decrease in the credit card payments.

Practical question - has anyone found a "calculator" to insert onto their payment pages, which automatically works out what fees can be charged to each client? every country and type of card seems to have a different rate, with various add ons.
Seems like a pointless nightmare, counterproductive, which is impossible to operate and will punish small businesses.
Someone give me the good news, please!!
#1393018 by Fiona A from Aglish
Wed Feb 21, 2018 7:12 pm
Hi Cath,
I'll send you a few. The actual EU doc (can't make much sense of it) and a few others. Its being touted as an end to companies ripping off their clients and an end to credit card payment fees, when in fact its just the company who now has to pay. The rules are different for eu, uk and non eu companies and clients. I'll send you what I've found out. The law changed on 13 Jan and we are trying to make changes asap.
#1393061 by Susan from Montreal
Thu Feb 22, 2018 4:44 am
Hi Jim,

Could you please post the links that you offered to send Cath here in the Forums? I've read a bit about this in the US business press but the information as reported didn't make sense. For example, I couldn't figure out if it applies to just online businesses or brick and mortar businesses such as stores. And what about hotels that can take payments online in advance but also in person as a guest is leaving? It seems like it may potentially affect all of us, whether we're based in the EU or not, with EU-based affiliates. I do feel bad for EU business such as you who are trying to figure it out!

#1393099 by Jeff from
Thu Feb 22, 2018 2:43 pm
Hi Jim. Be "happy" that the EU is just getting around to making the changes. North American merchants have been eating that cost for decades, and their user agreement with the cards doesn't even allow them to offer a lower cash-only price. All prices have to be the same regardless of payment method, and the merchant eats the credit card or debit card fee.
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