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Credit and debit card fees for retailers have just been halved

It remains to be seen whether businesses will pass the savings onto customers.

ONE OF THE FEES banks charge retailers for processing debit and credit cards is being halved from today.

The capping of “interchange” fees could save businesses over €36 million a year, according to the Department of Finance.

The charges do not impact consumers directly, though they might affect them indirectly through higher prices and a reluctance on the part of retailers to accept card payments, the department noted in a statement.

The maximum fee for domestic debit card sales is being set at a weighted average of 0.10% of the transaction value, half the current level, while the maximum for domestic credit card transactions is being cut to 0.30%.

Call to end ‘minimum spend’

Minister for Finance Michael Noonan said the measure, which was first announced in Budget 2016, will reduce the cost to retailers who accept card payments.

Noonan also called on retailers to now remove the “minimum spend” on cards.

“We are all familiar with outlets who will not accept card payments under €10 or in some cases €5,” he said.

“Retailers should be aware that most shoppers have a contactless card in their wallets which can be used for transactions up to €30,” Noonan added.

It is cheaper and faster than any other way to pay, both for the retailer and the consumer.

Read: Here’s why ‘Culchie Shopping Day’ is now like any other

Read: Almost nobody is border-hopping for their Christmas shopping

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41 Comments
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    Mute Eddie Binbags
    Favourite Eddie Binbags
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    Dec 9th 2015, 12:57 PM

    Living in England at the minute. No bloody bank charges thank god. At home was charged 50 euro quarterly to use my own money.
    What a shower!!

    127
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    Mute W1K
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    Dec 9th 2015, 2:59 PM

    We have no bank charges for now. But they’re looking at charging in the near future. I pay over draft fees.

    5
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    Mute The Dude
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    Dec 9th 2015, 5:52 PM

    The push for removing cash is on!

    21
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    Mute R39CRW8f
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    Dec 10th 2015, 10:18 AM

    And once most of use cashless transactions, whats the betting Irish/ECB banks will go the Negative Interest Rate route?

    Good article about it in the Wall Street Journal regarding Denmark.

    http://www.wsj.com/articles/less-than-zero-living-with-negative-rates-1449621094

    2
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    Mute Byyys
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    Dec 9th 2015, 2:20 PM

    Why would you use a debit card to pay when the bank charges you a fee per each transaction!!

    33
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    Mute tippittytoppittytupp
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    Dec 9th 2015, 3:21 PM

    There is no fee charged on contactless payments at the moment.

    17
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    Mute Byyys
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    Dec 9th 2015, 3:29 PM

    AIB charge 20cent for each contactless payment however “The transaction fee for contactless transactions and for sending and receiving money using the ME2U APP will be waived until 26th August 2016… for the moment it’s free yes.

    12
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    Mute Conor Power
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    Dec 9th 2015, 6:27 PM

    No fees with PTSB

    10
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    Mute R39CRW8f
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    Dec 10th 2015, 10:19 AM

    Costs me 10c with BOI for each contactless payment

    5
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    Mute Stephen Cullen
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    Dec 9th 2015, 12:05 PM

    Reduced credit card fees and increase in minimum wage, not sure how employers are better off…

    28
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    Mute Gold for nothing
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    Dec 9th 2015, 12:16 PM

    increased wages = increased spending + less bank charges = more profit

    80
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    Mute Ray Farrelly
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    Dec 9th 2015, 12:37 PM

    But what’s in it for me goldie show me the money.

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    Mute Gold for nothing
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    Dec 9th 2015, 12:50 PM

    Nothing Ray, you need a job. No go sign on. Good lad.

    7
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    Mute Ray Farrelly
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    Dec 9th 2015, 12:54 PM

    How do you know I am not an OAP goldie?

    16
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    Mute Gold for nothing
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    Dec 9th 2015, 12:56 PM

    If you think I even care…anyway, an increase in minimum wage is good for society. Move along now.

    6
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    Mute Stephen Cullen
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    Dec 9th 2015, 1:00 PM

    Ever heard of inflation?!

    7
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    Mute Ray Farrelly
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    Dec 9th 2015, 1:03 PM

    I could not give a rats arse what you think goldie.

    15
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    Mute Thomas Mac Donagh
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    Dec 9th 2015, 3:00 PM

    the shinnerbot is most agitated today, perhaps you should reboot and try again :D

    1
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    Mute Ray Farrelly
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    Dec 9th 2015, 3:17 PM

    Ah thomas mac the resident fool is it windy in wexford?

    5
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    Mute Alien8
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    Dec 9th 2015, 4:56 PM

    increased wages = (increased taxes) = static spending + same bank charges = more profit

    3
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    Mute MeanderingsNI
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    Dec 9th 2015, 12:39 PM

    Does this mean Ireland will catch up with most of the modern world and use contactless payments?

    21
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    Mute Gold for nothing
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    Dec 9th 2015, 12:50 PM

    Contact less payments are widely available. I use it a lot.

    67
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    Mute Dave Harris
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    Dec 9th 2015, 12:55 PM

    It’s the exception rather than the rule still in my experience.

    22
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    Mute MeanderingsNI
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    Dec 9th 2015, 1:12 PM

    It was a flop in Ireland, despite the credit card companies best efforts.

    7
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    Mute Karol Doran
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    Dec 9th 2015, 2:36 PM

    I use contactless payment daily.

    21
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    Mute Cosmo Kramer
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    Dec 9th 2015, 3:07 PM

    I take it you haven’t been to the states lately? You still have to swipe your card over there, plus you have to sign a receipt.

    23
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    Mute John
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    Dec 9th 2015, 3:20 PM

    Cash is King

    20
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    Mute MeanderingsNI
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    Dec 9th 2015, 3:41 PM

    Im just saying, i read an article that the contactless wasn’t being adopted by irish card holders as quickly as other countries, in the article they suggested apple pay would be the same.

    3
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    Mute Michael Sands
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    Dec 9th 2015, 5:22 PM

    So there were thieves using the contactless payments by passing people on the street using equipment to steal money from them. This led to wallets being sold made with metal inlays but I have seen the wallets for sale but I do not know if the stealing of money from contactless payments was an urban myth or not?

    http://www.independent.co.uk/news-14-1/contactless-payment-card-theft-how-is-the-data-stolen-and-what-can-i-do-to-protect-myself-10409319.html
    http://www.dailymail.co.uk/sciencetech/article-2818811/Major-flaw-discovered-Visa-s-contactless-cards-Thieves-bypass-20-limit-steal-999-999-99-long-s-foreign-currency.html

    1
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    Mute Jennie
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    Dec 9th 2015, 1:03 PM

    So the more I use my credit card the more I save…. Wohoo

    19
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    Mute R39CRW8f
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    Dec 10th 2015, 10:21 AM

    That’s what my bank manager told me to do if I want to avoid fees.

    Pay all bills and purchases with the credit card, and then just pay off the balance in one go every month.

    Taking cash out on the CC is charged separately though

    3
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    Mute saoirse janneau
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    Dec 9th 2015, 9:59 PM

    Cashless society where big brother can view all of our financial transactions. Orwell youre as good as nostradamus!

    11
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    Mute Justin Kearney
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    Dec 9th 2015, 5:17 PM

    If only Ulster Bank would get their finger out and issue contactless cards.

    8
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    Mute Michael Sands
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    Dec 9th 2015, 5:17 PM

    Cash outside of banks is seen as good as debt, the E.U. would rather have a cashless society. Now that is a thought lol.

    4
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    Mute Andrew Matheson
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    Dec 9th 2015, 7:49 PM

    Contactless payments eliminate the minimum spend requirements. I don’t think there’s any charges to business for it.

    Most companies should change their policy to enforce contactless below €30 and only use chip n pin after that!

    2
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    Mute john o sullivan
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    Dec 9th 2015, 5:28 PM

    I use a card reader from a company called sum up. Does anyone know if this affects me

    1
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    Mute Myles
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    Dec 9th 2015, 5:40 PM

    Contact them

    1
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    Mute Michael Hayden
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    Dec 9th 2015, 5:44 PM

    I wouldn’t say so. I got rid of sum up as the 1.95% was costing to much.

    Went with pay zone

    3
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