First Data card charges to increase
Some retailers now looking for alternatives following letter from card payment provider
Payment provider First Data is to alter its card transaction charges, with some retailers seeing a 10% increase to debit transactions.
Retailers were informed about the changes, which come into effect on 1 November, in a letter sent earlier this month.
In the letter, First Data said: “[Payment networks] have introduced a number of changes to interchange fees and assessment fees that affect the specific types of transactions you process.
“Interchange caps are being applied on transactions made in Europe with cards issued elsewhere from 8 October.”
A retailer who has First Data as their card payment provider is now looking for an alternative. They said: “Most retailers deal with debit cards and First Data’s charges are going up around 10%.
“It’s going to make a considerable difference to overheads and it’s quite worrying.
“We are currently charged £500 per month in card transactions, and this could easily go up to £550 with the changes. I’ve got time to find a new provider, which gives me some assurance.”
First Data was unable to comment as RN went to print.
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