What does this mean?

[blackthorn]

I`m going to buy a pram for my daughter, who is having a baby.
The one she has chosen is from Toys-r-Us and because of the distance she lives from me, I`m buying it from their website. I havent bought it yet because a satement appears near the end which I dont fully understand. I`m not buying it on tick or credit card, I`m using switch.


By completing this transaction I agree that 2.5% of the above amount is payable by me to Toys R Us Financial Services Ltd for its provision of payment processing services to me. The balance of 97.5% is payable to Toys R Us Ltd for the goods. The total amount payable remains the same. I have read and agree to this and the Toys R Us Terms and Conditions.


I know I`m not paying more than the stated price but what does that mean. Btw, I asked my other daughter who works in a shop and she says that there is no charge for using switch/debit cards.

[swoop101]

This is just the new way that retail outlets can claim tax allowances on the charge they have to pay the banks for card transactions.
They are on most receipts that you get when you pay by switch/credit card.

don't worry.

HTH

edit: ha, got in first this time

[Rob]

It seems to be fairly common now, I've seen similar small print at Tescos and other large shops. It appears to apply to credit cards, not debit cards?

I dont know whay they do it, but presumably theres some financial benefit. It looks like the companies set up a subsidiary agent company who will claim the money owed from the credit card bank, and then pay it to the shop itself. Maybe the credit processing subsidiary is acting as a credit facility to the shop?

[Tricky]

Retailers are charged by credit card companies for the provision of the systems the 2.5% is fairly common although normally only on credit cards, switch is normally 60p per transaction. For this, retailers normally get "free" use of the signs, credit card machines, phone lines etc.

Guess how credit card companies make money...

The point of this is that there's an on-going dispute between businesses and the VATman on whether card transactions should be liable for VAT as "services" or counted as VAT free.

IIRC there was a recent ruling that seemed to be in favour of the VAT man, but I believe it's currently going to appeal.

Either way it makes damn all difference to the consumer.

[Bex]

Originally Posted by Tricky

Retailers are charged by credit card companies for the provision of the systems the 2.5% is fairly common although normally only on credit cards, switch is normally 60p per transaction. For this, retailers normally get "free" use of the signs, credit card machines, phone lines etc.

Guess how credit card companies make money...

when i used to work at sainsburys...the blurp used to appear on all EFT slips....whether it was credit card or switch cards..... i think the reasons have already been identified

[Atomic22]

i bought our pram 11 months ago from the toy'r'us website and i never saw the statement you read (or never read small print)..........hehehe
i paid over the web because it was cheaper but picked it up from my local branch rather than have it delivered because it was quicker.....