*CREDIT CARD FEES BANNED FROM 13TH JANUARY, 2018*
As a consequence of Article 62(4) of the Payment Services Directive (EU) 2015/2366 (‘PSD2’), from 13th January, 2018, retailers will no longer be permitted to levy charges on clients who choose to pay for a purchase by way of credit or debit card (business cards, American Express cards and Diners Club cards are excluded from the general prohibition).
Whilst the draft legislation implementing PSD2 into Irish law, is still awaited, members should be planning, now, as to how to recover card fees, which they may previously have levied, on clients, who paid by way of credit or debit card.
One option would be to treat the charges as an overhead to be included when calculating your selling price.
Where you are acting as an agent and are not in a position to control your selling price, consideration could be given to including the charges in a booking fee, but booking fees would have to be levied on all bookings, regardless of the customer’s payment method.
PSD2 permits the “steering” of a customer to use a different means of payment, by offering the customer a reduction in the price or another inducement to use a different means of payment.