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Credit card transaction fees 'should be lowered'

Credit card transaction fees 'should be lowered'

Category: Credit cards

Updated: 12/01/2015
First Published: 24/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Banks have been urged to cut transaction fees for purchases made using credit cards.

The British Retail Consortium (BRC) made the call after finding that consumers could benefit from £800 million savings through lower shop prices.

According to the body, the average credit card transaction costs retailers 35p, compared to 8p for a debit card and 2p for cash.

It noted that if all payments were brought down to cash levels, shopkeepers could afford to pass on savings to customers.

Stephen Robertson, director general of the BRC, said: "Despite the recession, [banks] are looking to maximise their profits and protect their own interests at the expense of customers who ultimately meet these costs."

He argued that the charges do not reflect the true cost to banks of processing these transactions.

Barclaycard recently announced that it is planning a new reward credit card scheme that would provide instant returns for customers.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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