HSBC has received widespread criticism following recent reports about it’s debit & credit card transaction fees.
According to the British Retail Consortium (BRC), the bank has implemented a series of unfair charges for it’s personal and business bank accounts over the last 4-5 years. The BRC also argues that HSBC has launched a succession of new ‘higher charge’ products for the sole purpose of moving over existing customers in an attempt to improve profit margins.
A spokesperson from the BRC cited HSBC’s soon to be launched “World” and “Premium” cards as an example of their recent strategy. The new accounts are subject to additional fees of between 0.65% and 0.95%. This is charged after the standard 0.75% transaction value currently payable by most retailers.
A recent BRC report has concluded that the average cash transaction costs the British retailer just over 2p in every pound. Compare this to debit card 8.5p and hefty credit card fees of 34p, it’s no wonder the BRC are concerned for the plight of it’s members. The body has suggested that approximately £500m in savings could be passed back to UK consumers every year if banking fees for debit & credit card payments were brought in line with cash transactions.
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Image: Shame. by Charlotte Spencer!