Banks are planning to “cut” the commission they charge for “small” transactions made electronically using POS after the new market conditions, with the mandatory installation of the devices in 35 more retail branches including kiosks, convenience stores and street markets.
The pressures that have been exerted for a long time by certain industries, first of all the stall holders, who sell even at a loss, for example cigarettes that buyers pay by card, seem to be bringing results.
The general issue of procurement was urgently raised in the Hellenic Banking Union by the leadership of the Ministry of Finance and it seems that a few days ago it received a commitment that the margins for reductions in charges for the use of POS for transactions of relatively small value will be re-examined, with the announcements expected within March, according to ERTnews.
According to information, the new framework drawn up by the banks provides for a “cut” of commissions up to 50%, in the part that concerns them. That is, the commission on relatively low value transactions is to be limited to 0.10% (from 0.20%).
However, for there to be a meaningful response to POS end-use charges, everyone involved in the “chain” will need to act accordingly.
It is worth noting that in each POS transaction the commissions concern three levels adding up to the final charge. In addition to the banks’ share, when their own card is used, a fee is also imposed by Visa or Mastercard and also by the POS provider (the 35 different companies that are now running to upgrade their software). Result; The total commission ranges from 0.45% to over 2%.
In a pack of cigarettes with a final price of 4.60 euros, the kiosk owner buys the pack at 4.38 euros. His profit is just 22 cents per packet. In another brand the profit is limited to 11 cents (wholesale price 3.79 euros, selling price 3.9 euros). If the total commission for using POS is anywhere from 0.45% to 2% as the stall holders claim, the profit is zero.
It is noted that kiosks and convenience stores have time to install the POS, which they should already have ordered (until yesterday) until the end of March. Otherwise, with today’s data, they are threatened from April 1 with a fine of 1,500 euros.
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