Banks to charge shops to tackle fraud

Visa_cardsHey! Do you own a shop or a restaurant? You'll love this bit of news then. Basically, for the first time, you're going to have to pay fees to prove you hate fraud.

Great eh?

The fees will be around £65, which will prove that shops are following contract rules set by Visa and Mastercard designed to protect customer data.

If you think you're going to stick two fingers up at it, then get this - failure to do so could end in a charge of £600 a year by the banks, not to mention penalties of up to £100,000 by the card issuers.


The Telegraph report that retailers using payment services firm Streamline, which is owned by WorldPay, are receiving letters from chief-exec Ron Kalifa, ordering them to fork out for an assessment of their IT systems. Streamline said its "low cost" option of an initial £19.99 plus VAT - to use its preferred assessor - and £35,000 in insurance to cover potential fines was the most "competitive" deal available.

Retailers already have [UK] Data Protection legislation in place, leaving many businesses accusing the banks of cashing in at everyone's expense.

It appears that the banking world is doing its utmost to become officially the most hated group of people ever to walk the Earth.

Politicians must be thrilled.


  • Alexis
    Presumably the 'penalties' would be a pre-estimate of loss that could be incurred should the retailer not be compliant? £600 might be hard to justify if a shop only suffered £50 worth or fraudulent actions previously?
  • PokeHerPete
    Is it considered fraud by running a competition and never giving the prizes out? Get Len on the case!
  • tin
    Yeah, barclaycard business have passed on their business customer details to some spam-merchant in the states, that sends scaremongering emails to their businesses warning that they must do this compliance stuff or face fines too. Of course they can do the compliance for you for a fee. However to be fair it does say the fees and the service are optional, as long as you fill in a somewhat incomprehensible form. All to run a Barclaycard Business supplied and owned PDQ that they charge you to have in the first place. It's a win-win situation.
  • Denz
    Barclaycard Merchant sevices have been doing this for at least three yars, earth shattering news.
  • The B.
    I think I've mentioned it before but I'll say it again. I work in the same building as BarclayCard and they are the most arrogant, obnoxious cunts I've ever encountered.
  • Jolyon B.
    Dead Bob - can you mention it just one more time please as it puts a smile on my face everytime I read that Barclaycard are the most arrogant, obnoxious cunts you've ever encountered
  • spampen
    In fairness to the banks and the Card Schemes they are trying to force all merchants to take better care of our customer data. The Card Schemes thus enforce large penalties on the banks. The banks ask very nicely to the merchants who ignore the mail. The banks impose increasing fines on the merchants who still ignore the mail. So they have to do something.
  • tin
    Except that they're not really doing anything, just passing your details to a spammy 3rd party who will "help" you make your equipment you already pay Barclaycard for - and that they supply and control in it's entirety - be compliant. Yes if you're some place that takes, stores and uses customer payment data in some way, but no if you have 1 or 2 bank supplied PDQ machines. The regs do make some distinction but the responsibility is being shoved to the wrong party, and barclaycard for example are using it as an opportunity to make money selling customer details to 3rd parties.

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