Written answers

Thursday, 30 September 2010

Department of Finance

Debit Card Charges

10:30 am

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 48: To ask the Minister for Finance his views on the imposition of handling charges or booking fees for laser card transactions; and if he will make a statement on the matter. [33905/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I understand the Deputy is referring to transaction-based charges imposed by merchants at the point of sale for the use of debit or credit cards as a payment instrument.

The Government's policy is to promote the increased use of electronic payments throughout the economy, with the longer-term objective of significant reductions, over a number of years, in the volume of paper-based payments in use throughout the economy.

The imposition of handling charges or booking fees is a matter for each retailer who chooses to offer card transactions. Such fees may reflect a variety of factors, including the price charged by the retailer's bank to offer laser card services.

While I am conscious of the additional cost to consumers arising from such charges, I should point out that in the event that retailers were unable to reflect their own costs, they may choose not to accept payment using debit or credit cards. This could result in increased use of paper-based payment instruments, a development which would run counter to the Government's objective of encouraging the use of electronic payment methods.

The Deputy may wish to be aware that, notwithstanding the above, the Consumer Protection Act 2007, which is under the remit of my colleague, the Minister for Enterprise, Trade and Innovation, Minister Batt O'Keeffe, T.D, may apply in the scenario referred to in the question. The National Consumer Agency is statutorily responsible for enforcing the provisions of that Act and should be consulted for advice in relation to specific cases.

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