Table of Contents
- 1 A minimum amount is sometimes imposed on us when we want to pay by bank card. But in recent years, more and more merchants are waiving this restriction. A team from TF1 is looking into their motivations.
- 2 We compensate with large amountsValérie Sonntag, “Carrefour Express” manager in Molsheim (Bas-Rhin)
- 3 **PAA Question 1:** What are the potential downsides of eliminating minimum spends for small businesses like Evita’s bakery, considering the costs associated with processing card transactions?
A minimum amount is sometimes imposed on us when we want to pay by bank card. But in recent years, more and more merchants are waiving this restriction. A team from TF1 is looking into their motivations.
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The 1 p.m.
To pay by bank card in the Schaditzki bakery and pastry shop in Molsheim (Bas-Rhin), you previously had to spend more than 10 euros. But for several years, the manager has no longer applied the rule. “When we displayed it, people didn’t want it because they only spent one or two euros on contactless. That meant that I was pushing customers away, and they were going elsewhere”explains Evita Schaditzki in the TF1 news report visible above.
If this restriction was a way to limit the costs associated with bank card payments, Evita was able to find many customers by removing it. “And there you have it, over a day…”says the manager, handing over an invoice: it says that 630 euros were paid in cash, compared to 3,825 by bank card.
We compensate with large amounts
Valérie Sonntag, “Carrefour Express” manager in Molsheim (Bas-Rhin)
We compensate with large amounts
In most businesses, card payments represent almost all of the turnover. A few meters further, the store Carrefour Expresswhich had a minimum amount of five euros, also withdrew it four years ago.
This other report from TF1, broadcast in 2023, explained that in detail, if the merchant and his client do not have the same bank, the first must pay a commission of around 0.3%. Added to this are network fees (up to 0.2% per payment), and the margin made by the bank (around 1.5%). In total, all these cumulative micro-percentages can therefore reach 2% per transaction. The manager of our Carrefour Express du Bas-Rhin is there. It is “a really minimal percentage, which is offset by the large amounts, because if we have 8 euros, we also have 80 euros”justifies Valérie Sonntag in front of our camera.
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**PAA Question 1:** What are the potential downsides of eliminating minimum spends for small businesses like Evita’s bakery, considering the costs associated with processing card transactions?
## Interview: The End of Minimum Spends for Card Payments
**Host:** Welcome to World Today News! Today, we’re diving into a trend observed in the retail landscape: the decline of minimum spending requirements for debit and credit card payments. We are joined by two guests to discuss this shift:
* **Evita Schaditzki**, owner of Schaditzki Bakery and Pastry Shop in Molsheim.
* **Valérie Sonntag**, manager of Carrefour Express in Molsheim.
**I. The Shifting Landscape**
* **Host:** Evita, thank you for joining us. Your bakery recently decided to eliminate the minimum spend requirement for card payments. What prompted this decision?
* **Evita:**
* **Host:** Valérie, Carrefour Express made a similar change a few years ago. Did you observe similar customer behavior after removing the minimum spend?
* **Valérie:**
* **Host:** This trend seems to be growing. What factors do you think are driving this change across the retail sector?
**II. Balancing Costs and Convenience**
* **Host:** Traditionally, minimum spend rules were implemented to offset the transactional fees associated with card payments. Valérie, can you elaborate on those fees and how they affect a business like yours?
* **Valérie:**
* **Host:** Evita, you mentioned seeing a significant shift towards card payments in your bakery. Do you believe the convenience outweighs the potential loss from transaction fees?
* **Evita:**
* **Host:** How do you both see the evolving relationship between retailers and payment processors in the context of these shrinking transaction fees?
**III Looking Ahead: The Future of Payments**
* **Host:** Beyond removing minimum spends, what other changes do you foresee in the way consumers and businesses interact with payments in the future?
* **Evita:**
* **Host:** Valérie, do you think we are moving towards a completely cashless society?
* **Valérie:**
* **Host:** For both of you, what advice would you give to other businesses considering making changes to their payment policies?
* **Evita & Valérie:**
**Host:** Thank you, Evita and Valérie, for shedding light on this fascinating trend. It seems the future of payments is evolving rapidly, driven by both consumer behavior and technological advancements.
**Host:** Thank you for tuning in to World Today News. We will continue to follow this developing story and provide you with the latest updates.
