Showing posts with label Taxi Leaks Editorial http://taxileaks.blogspot.com/ May 30. Show all posts
Showing posts with label Taxi Leaks Editorial http://taxileaks.blogspot.com/ May 30. Show all posts

Wednesday 30 May 2018

And So It Begins....Visa Doubles Transaction Charges to 8%


£1bn assault on the High Street: Shopkeepers suffer as Visa hikes fees on card payments. Unfortunately, this will give the green light to increase transaction charges for Taxi drivers taking Card payments. 

It's estimated that shopkeepers will pay £1billion extra a year to payments giant Visa after it hiked fees.

The increase comes as the Taxi trade faced a boom in customers who want to pay by card.

But what many passengers don’t realise is that every transaction costs the driver, and Visa has been accused of cashing in, by hiking its fees.

Card sharks: Taxi have seen a massive increase in customers who pay by card for even the cheapest journeys meaning that drivers with company's that charge the extra 20p on top of the transaction percentage, pay even more in fees

Experts warned that some will see their bills more than double. 

Obviously it's not just Taxis who will be affected, payments consultant CMSPI said that increased card costs will hit Europe’s shops for £2billion.

In the UK alone, which has embraced contactless cards and chip and pin, the bill will be £1billion.

Visa Europe has doubled charges since 2015 from an average 4p per transaction to 8p, says CMSPI. 

Firm’s crippling £26,750 card bill 
Hardware store owner Vin Vara says his firm is struggling because of huge bills from credit card companies.
Vara, 58, employs 38 people at 11 Tool Shop stores in London and lost £20,400 in fees last year as shoppers paid by credit card. 

Some 60 per cent of customers pay by card and he expects the bill to rise to £26,750 this year.
He said: ‘People don’t understand the damage this can do. I’m scared for others on the High St about what’s going to happen to them.’
It used to keep just 1.5p of this as profit but now takes 5p after cutting costs, the consultant said.

CMSPI chief executive Brendan Doyle said: ‘This is incredibly disappointing. Visa, a multinational that consistently reports profit margins in excess of 50 per cent on multi-billion-dollar revenues, is piling cost after cost onto retailers and the latest change will be particularly hard on struggling small businesses.’ 

He added that CMSPI will complain to the European Commission about the hike.

Visa has become more aggressive since it was bought by its US sister firm for £15billion in 2016.

Until then, Visa Europe had been owned by banks, including Lloyds and Royal Bank of Scotland, and they made billions from its sale to namesake Visa Inc. 

The American company’s chief executive Charles Scharf plotted to hugely increase fees – in 2015, he said he hoped to ‘expand yields in Europe’.

MPs and business groups called for regulators to step in.

SNP MP Stewart Hosie, of the Treasury Select Committee, said: ‘It’s a scandal card issuers’ fees have increased massively. I would hope and expect card issuers would think again before they impose these costs.’

Meanwhile, High Street retailers face average hikes for UK card fees of 75 per cent, and other European card costs will come close to trebling with an increase of 189 per cent.

James Lowman of the Association of Convenience Stores said: ‘We encourage the Payment Systems Regulator to look closely at these fees to ensure fairness.’

Andrew Cregan, at the British Retail Consortium, also backed intervention by the regulator.

Visa said: ‘The figures quoted are misleading and over-inflated. Our pricing means we can invest in world-leading cybersecurity and consumer protection, in innovation such as contactless and mobile payments, and in providing a global network which enables billions to make purchases safely, securely and reliably.’

TAXI LEAKS EXTRA BIT :
In the past, we've seen many retailers refuse to take Amex because of the time it takes them to pay up. 
We could now see the same exclusion notices regarding payment with Visa cards.

The London Taxi trade haven't been granted the right to choose how they are paid as our largest org says "it was a done deal'....and it was the drivers who were done!

The trade were promised a increase in bums on seats and a massive publicity campaign from TfL.....it just never happen. 



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Breaking News : LPHCA Has Lost Its Challenge To TFL's New Operators Licence Fees.


The Licensed Private Hire Car Association (LPHCA) has lost its case against TFL's proposals to increased fees for operators with over 11 vehicles to over £3,000, when they were previously under £3,000. It said the measures could "wipe out" operators, "leaving the futures of many drivers, industry suppliers and others connected to the industry in jeopardy".

The UK's largest private hire trade body, United Private Hire Drivers (UPHD) applied to intervene in the case, which was heard in the High Court, but its application was rejected.

It has argued that the change in fees breaches the Equality Act of 2010 by forcing drivers to shoulder "unfair costs and regulatory burdens" while denying them representation in the stakeholder process.

TfL announced last year that it was increasing charges for private hire operators for the costs of licensing, compliance and enforcement to reflect the growth of the private hire industry and the costs required to regulate it.

The number of privately licensed drivers soared by 78 per cent from 65,000 to 160,000 last year, while the number of vehicles increased from 50,000 to 112,000 over the same period.

TfL expects the cost of enforcement alone to reach £30m - up from a previous estimate of £4m - over the next five years. With the costs of licensing and compliance taken into account, the total reaches £209m over the same period.

​A TfL spokesperson said: “The licence fee changes reflect the increased cost of regulation and associated enforcement activity that has been driven by the huge growth in the private hire industry.

“The changes will fund the additional 250 compliance officers who do a crucial job in driving up standards and ensuring Londoners remain safe. After listening to the views of stakeholders during consultation we amended the fees structure to take into account the potential impact on small and medium-sized operators.

“We consider the changes to fees to be proportionate and will be defending our position.”

James Farrar, chair of the UPHD branch of the Independent Workers Union of Great Britain, said: "It's not surprising that gig economy bosses represented by the LPHCA are fighting tooth and nail to pass their cost and regulatory burden on to drivers. But it's dismaying to see TfL work so hard to avoid answering some troubling questions about how it discriminates against 117,000 mostly minority minicab drivers. We will be watching this case very carefully and we'll continue to pursue other avenues to challenge institutional racism at Transport for London."

An Addison Lee spokesman said: “We fully support TfL’s efforts to improve safety in the private hire sector through better regulation and more enforcement officers. Addison Lee recognises that these measures need to be paid for and we are happy to play our part through the increase to our licence fee.”



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