The British Retail Consortium (BRC) has urged the government to take action to reduce card fees charged by card companies.
Data published by the BRC revealed that credit card spending overtook cash spending in 2018. 20 billion retail transactions were carried out last year, the BRC found.
It also revealed that retailers spent £1.3 billion to accept payments from customers. According to the BRC, each transaction costs retailers an average of 5.85p.
The BRC stated that these costs are generated by the fees paid by businesses to credit and debit card companies. It is urging the government to improve regulation of card payment fees, and to expand and simplify the guidelines to cover ‘the full range of transactions’.
Commenting on the issue, Andrew Cregan, Policy Adviser for Payments and Consumer Credit at the BRC, said: ‘With card payments accounting for almost 80% of retail sales, it is vital that the government takes action to tackle the soaring costs that card companies charge retailers.
‘Without action, we will see businesses put under further pressure and it will be consumers who are forced to pay the price.’