Charging additional fees for card payments has been banned in Belgium since 2018. But some continue, like Jean (assumed name). He explains that he asks 50 cents from those who only buy packets of cigarettes or telephone or bus cards. The fault is the fixed prices of these goods, which combined with transaction costs, reduce its profits to a few cents per customer. But there is a big risk if he were to be denounced to the Economic Inspection, which still recorded 205 reports last year.
It all starts with a customer tipping our orange Alert Us button. “My bookseller charges an extra 50 cents when you make a purchase via Bancontact. I find that revolting and moreover, it is illegal. ‘there are other bookstores in the area’declared this anonymous alerter.
And indeed, it is forbidden in Belgium to claim additional fees for card payments (debit or credit) since August 9, 2018. Before this date, the merchant might request the equivalent of the cost of the service only, and not earn money with this supplement.
Only €0.13 profit on a pack of cigarettes
The accused bookseller, whom we will call Jean to preserve his anonymity, agreed to testify: he fully assumes the facts. Here is his explanation.
“It’s not systematic. I only ask for the 50 centimes very rarely. In fact, I only charge this supplement for everything related to tobacco, telephone cards or bus cards, because you earn almost nothing nothing on it”he explains.
The problem with these products is that they have a fixed price that the merchant cannot increase to cover their costs. This is valid for the press, tobacco products, National Lottery games, stamps, telephone cards and public transport cards. All the flagship products of bookstores. “All my colleagues are closing. Booksellers, we no longer earn anything”he insists.
He details his margins: “0.78% on €5 or €10 telephone cards, 1% on stamps, 1 to 1.5% on bus cards and 2.1% on the cheapest pack of cigarettes.” Or 13.02 cents of profit on a pack of cigarettes at €6.2.
€0.13 from which another €0.05 of payment by card is withdrawn
Margins that are still burdened when the customer pays by card. Because this service has a cost for the merchant. With Worldlinethe market leader, prices are 2.07 cents per transaction up to €5, 5.17 cents from €5.01 to €10, and 7.62 cents above €10.
Added to this are other costs related to the Bancontact system, including a subscription of €27.07 per month for more than 10 customers per day. Not to mention the purchase or rental of the terminal or maintenance. There are thus packs ranging from €15 to €135 per month, with a certain number of transactions included and therefore free (60 to 2200). “And in that, we don’t count the ADSL line or the rolls for tickets. A pack of rolls is 50€”adds Jean.
Results : “With my accountant we calculated that I am between 3200 and 3400€ of Bancontact costs per year.” And so, when a customer only buys a pack of cigarettes at €6.2 and pays by card, 5.17 cents must be deducted from his 13.02 cent profit. He will therefore have earned 7.85 cents. It is to compensate that he claims 50 per transaction. But if someone buys something else, so a product on which he can choose the margin he earns on it, “like a chocolate, so I’m not asking for the 50 cents”he says anyway.
Fine of up to €100,000 and one year in prison
If the approach explained and justified in this way is understandable, it is nonetheless illegal. And the FPS Economy can crack down on traders like Jean.
First, to identify them, “nWe invite all citizens to file a report each time a merchant charges them fees in the event of payment by card, whether in store or online., recalls Etienne Mignolet, the spokesperson for the FPS Economy. These reports are made online on the website pointdecontact.belgique.bein the field Invoice and payment under the theme Fees to be paid according to the payment method chosen. In 2021, the Economic Inspectorate still received 205 reports on this subject.
Traders like John risk big: “When the services of the Economic Inspection have sufficient elements such as screenshots or cash vouchers attached, an investigation is initiated. In the event of a proven violation, the Economic Inspection will take the necessary measures to put an end to The arsenal of sanctions at his disposal ranges from a simple warning to a criminal fine ranging from 250 to 100,000 euros and/or a prison sentence of one month to one year, or even a fine administration”details the spokesperson who specifies that these heavy prosecutions and fines mainly concern repeat offenders.
The refusal of cards below a certain amount does not apply to his case
However, Jean believes that there is a loophole in the law that would work in his favor. “The state has officially banned the supplement but beware, I’m covered: the law forbids me to ask but I have the legal right to refuse a sale. So if they don’t agree, it’s not There’s no sale. They’re free to go elsewhere.” For Etienne Mignolet, this is not the case. The merchant can just refuse any electronic payment below a certain amount by displaying it very clearly beforehand. This is not the case here.
Many freelancers would adopt the same behavior
For his part, Christophe Wambersie, the Wallonia general secretary for the SNI (neutral union for the self-employed), says he understands the difficulty for a number of businesses, whose products are inexpensive and who must cover the relatively high electronic payment costs. “We also advise these merchants to set a floor price below which it is not possible to pay by Bancontact.
According to him, many freelancers would always adopt the same behavior as Jean by illegally claiming a supplement for payment by card. “Thes small shops (sandwich shops, stationery shops, bookshops, etc.) are still affected by this problem.
Xavier Deville, president of Prodipress, the federation which brings together independent booksellers in Wallonia and Brussels, also understands the point of view of our witness, “compared to its costs and the difficulties that the sector is experiencing today. Now it’s illegal. We are fighting to continue to explain to the government and all the players that we do not understand why a euro that is printed is a societal cost, borne by the State, but here because the money passes through an electronic means, it is up to the merchant to bear it. Why? This is not logical Whether it’s the banks that take care of it or the customer. That would seem more correct to me.”
He gives other examples with figures to explain why these independents are asking for help from the authorities.
“When you have fixed prices (for 80% of products), whether for tobacco, newspapers or national lottery products, you cannot pass on the cost requested by your operator to the public sale price” , he indicates. “When you sell 100 euros worth of tobacco products, sometimes you have 2 euros in profit.”
The president of Prodipress stresses that booksellers have little room for manoeuvre. “Today, the health crisis has caused, for not using cash, an increase in the cost of electronic payment. So today, more than half of transactions in bookstores are made by electronic payment. Difficult to deny that to the client.”
Xavier Deville makes a few demands to the government. “The government has theoretically planned to impose electronic payment on merchants by July 2022. So it would also be logical for the government to help these merchants or to find a way to reduce the costs of electronic payments for merchants who have low margins. At a bookstore we are talking regarding 8 to 10% margin. When you make 1000 euros in turnover by selling cigarettes, newspapers,… you have 80 euros gross in your pocket. you still have to pay your charges, your rent, your electricity, your gas, etc. If you have a 200 euro bill, it hurts”he regrets.
And to conclude: “Paying by card gives certain advantages such as security. We have less cash and it goes directly to the account. But for the moment, there are many more disadvantages for booksellers. There are a lot of small Given the cost of a newspaper, a drink, a pack of cigarettes, a stamp… If these small amounts are paid each time by bancontact, it is currently not profitable for a bookseller. ”
