Barclaycard – Electronic Transaction Fee – 3p
Doing an audit of a clients Merchant Card Fee statements this week, we noticed a new charge that appeared from July this year. The charge appeared as “Electronic Transaction Fee” at a rate of 3p for every transaction that the retailer accepted on credit or debit card.
On calling Barclaycard to determine what this new charge (which wasn’t part of the original deal) was, I was told by the customer services representative that the new charge was because OFCOM has banned the generation of revenue from certain 08 numbers by companies, hence Barclaycard no longer receives the 3p everytime the PDQ* machine dialled Barclaycard on the 08 number programmed into the machine. Hence they were passing on this lost revenue by way of a charge.
Luckily in this case the client sells very high value items and as a percentage the 3p makes only a small impact, however if this was a high volume low value retailer this would have a huge impact on profit margins.
Barclaycard certainly won’t be top of the list come renewal time.
* = the machine you put the debit/credit card in to enter your PIN. It’s typically connected to a landline and dials the bank using an 08 number i.e. 0844, 0845, 0870, 0871