UK Shops See Record High Card Payments but Face Increasing Costs

  • 76% of retail purchases made in 2017 were done using cards
  • Cash usage fell to 22% of all retail sales
  • Retailers spent an additional £170m on card payment processing fees in 2017
  • Card scheme fees increased by 39% in 2017
  • Increase in fees ranged between 30% and 100% for some transactions
  • British Retail Consortium calls for government and regulator action to address rising fees

According to the British Retail Consortium’s (BRC) annual Payments Survey, card payments accounted for 76% of all retail sales in 2017. Cash transactions fell by over 1%, making up only 22% of total retail sales. The survey, which covers 48% of the entire retail industry, highlights concerns from retailers about rising costs associated with card payments. Retailers spent an additional £170m on processing fees in 2017, reaching nearly £1bn for the year. Card scheme fees increased by 39%. The BRC urges government and regulatory intervention to address these issues.

Factuality Level: 9
Factuality Justification: The article provides accurate information from a reliable source (British Retail Consortium), presents relevant data (percentage of retail sales made with cards and cash) and discusses the concerns of retailers regarding rising costs of accepting card payments. It also mentions legal action taken by retailers against card companies and calls for government intervention.
Noise Level: 3
Noise Justification: The article provides relevant information about the shift towards card payments in the UK retail industry and the rising costs faced by retailers due to card scheme fees. It also mentions the government’s role in addressing this issue. However, it could benefit from more analysis or context on the long-term trends and consequences of this shift, as well as potential solutions.
Financial Relevance: Yes
Financial Markets Impacted: Retailers and card companies (Mastercard and Visa)
Financial Rating Justification: The article discusses the increasing use of card payments in retail purchases, the impact on retailers’ costs, and the concern over rising card scheme fees. It also mentions a court ruling regarding these fees and calls for government action.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk