CSNA speaks out against card providers charging “non-compliance” fees

It’s never easy being a retailer; there are times when it appears the entire world is out to get you. We would be forgiven for believing, with all the chances that financial institutions have had to mend their ways, that we are free from any possibility of being treated unethically by our credit card processor; well, think again my friend.

One of our members had an arrangement with PostPoint to process his credit and debit cards; this was done through AIBMS. The member switched his provider to Elavon as he believed their fee structure was better for him. He duly advised AIBMS that he would not need their services.

Fourteen months later, and following innumerable calls to AIBMS, AIB, PostPoint, ComReg, CCPC and the Central Bank to no avail, each month a direct debit for over €69 was presented and paid by his bank to AIBMS for zero service, a “compliance fee” and, wait for it, a “non-compliance fee”.

AIBMS has confirmed that they are not processing any debit or credit cards, and that they are not supplying any service to the retailer yet did not commit to refunding over €700 in erroneous charges.

In the CSNA’s view, we would have thought that their system was sufficiently sensitive to detect any merchant where there were not any transactions, and they would be able to flag this for a query/intervention. However, no query was raised on their side.

In the meantime, we advised the member to avail of the will need to furnish to the Executive. This will include a declaration from the applicant that they agree to be compliant with Tobacco Control laws.

Once the bill is published it will, no doubt, be subjected to much scrutiny from all sides of civic society. We have no doubt that the media, the non-governmental organisations and many politicians will try to frame the analysis and discussion in the context of “controlling” vaping. However, this bill covers a lot more than vaping; it outlaws self-service vending machines, introduces a minimum age for selling tobacco products, makes Fixed Notice Penalties (on the spot fines) from EHOs possible for a wide range of offences and prohibits the sale of tobacco from anywhere other than a permanent outlet. It also removes the current defence tobacco retailers were entitled to rely on, that they had done everything possible to prevent a sale to a minor, by way of training, instructions, notices, till prompts etc.

The CSNA will return to this important matter over the coming weeks.

‘no-quibble direct debit refund’. We await a formal explanation from AIBMS and have put Minister of State with responsibility for banking/financial institutions, Jennifer Carroll-MacNeill on notice regarding the issue of merchant service providers charging noncompliance “fees”. To the best of our knowledge, these fees have not been approved or authorised by the Central Bank. ■