Resolved Question

IS IT LEGAL FOR ASIAN SHOPS TO CHARGE 50P OR MORE FOR A PERSON TO USE A CARD AS PAYMENT?

I NOTICE THAT LOTS OF ASIAN shops practice this method of charging 50p to £1 to use your card . is this an asian business thing ? Is it legal?

Additional Details

TE/ but they also charge on debit cards which dont carry this charge ? If i go to a large chain store say £land they dont let you use the card if its lower than 5£ but they dont offer to let you you use it for a charge either i wonder why this ? Is it because its a little shady in practice and the big chain stores dont want that image ?

6 days ago

Best Answer - Chosen by Asker

yes, it appears to be asian thing...

the reason that they charge more because the credit card company charge them about 4% fee for the use of the credit card, i.e., they only receive 96 cents for each dollar of sales with credit card used, and that cuts into their profit.

it is possible to be legal, either charging a fee or increasing the product price for credit card customers.

you may pay with a debit card instead.

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Other Answers (4)

• Why do you say asian shops ? Is race an issue ? I will address this as assuming you mean local small businesses.
  Any shop can make charges for using Credit Card or Debit cards as they have to pay a charge to the banks.
  This is the same way a company with whom you for example book tickets for a concert and they may charge a fee for doing so, when you give them your credit card details.
  On debit cards there a fixed charge is made by the banks.
  On the credit cards there is a minimum charge plus a precentage of sale.
  
  If you used your credit card at a cash machine the bank will make a charge- if you use your debit card in a cash machine, the banks have chosen to "write off" the charge.
  
  Large stores do not charge as their profit margins are overall bigger, they generally make bigger sales and they have special deals with the banks which are not available to your average local small businesses (or asian shops in your case). So the only solution is pay cash or use a Superstore chain.
  
  I know lidl is a big store as profits are small they will not let you use your credit card, they have a special deal with the banks for debit cards so they let you use that.
  
  Most local business have setup a limit of £5 or £10 - they dont charge if you spend more.
  
  My local shop owner is a non Asian and he cherges £1 for the privilege of using and credit card and he is well within his rights to do so.

  Source(s):

• All shops whether Asian or not have to pay a fee to the bank for the use of debit or credit cards.
  It's normal practice in the UK. Some shops if they are taking stacks of money do not pass the charge onto their customers, but a lot do. Because of this in my business, I would only accept cash or cheques.
• yes they can any business can they do it to cover the charges they have to pay
• yes, asian or other