CardX Featured on Regulatory Approaches to Credit Card Fees in International Markets
“Just days before the U.K. banned businesses from passing on credit card transaction fees to shoppers, food delivery company Just Eat introduced a blanket “service charge” for all orders—whether shoppers pay by credit, debit or cash.
Consumer advocates and media criticized the move as circumventing the new rules. But on closer inspection, who could blame Just Eat?
To accept payments by credit card, sellers of goods and services have to hand over about 3 percent of their sales—a significant chunk for those with low margins—to Visa or MasterCard to cover processing costs. Just Eat and other businesses should not be forced to absorb these costs when consumers are the ones choosing to use credit cards for convenience or rewards, such as points and airline miles.”