EU credit card charges directive January 2018

As of the 13th January 2018 a new EU Directive has been issued, which, prevents any company from charging customers for processing fees when paying by credit or debit cards.

As you can imagine, for smaller businesses such as ourselves, this has a detrimental impact. Guided Motorbike Tours Ltd have always offered their customers a choice to pay with credit or debit card or PayPal for their convenience when paying the deposit for a tour without passing on the merchant credit or debit card companies processing fees

However, when paying the balance of a tour via PayPal or credit/debit card, historically, we would pass on the cost of the processing fee to the customer due to the percentage of loss. Guided Motorbike Tours Ltd had never charged anymore than what the card company would charge for the transaction (as per law we would only charge the cost price of the fees without any profit or gain)

Due to the new directive we can no longer pass on the processing fees by law, it has now become law that the companies have to take the hit on this. Our alternative is to increase our prices, which, we want to avoid at all costs.

What we have decided to do, is ask every customer, wherever possible, to pay the balance of their tour by bank transfer. Bank transfers come without any processing fees and in many instances are simply carried out on a mobile, telephone banking or via internet banking. By doing this you will be supporting us in a MASSIVE way and assisting us in keeping our prices as low as they are.

Understandably, if you have no alternative but to pay with a credit or debit card we will clearly not refuse the payment but it will be a blow to us financially as we can no longer recover the 2.5% fee issued by the merchant providers.

The news of the directive may be good news for the consumer but for small businesses like ourselves it has come as a huge blow, so your support is greatly appreciated in working with us to prevent our prices from having to be increased

Many thanks for your continued support and custom

Chris Seagal
Managing Director

About Author

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Chris Seagal
Motorcycle tours guide and explorer. RoSPA Advanced Motorcycle Instructor (Gold)

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