News & Views - Savantor
You are here:
/
/
/
Debit cards

Debit cards, cash and card charges

Sunday, 16 July 2017

The British Retail Consortium (BRC) has just released a report relating to breakdown of retail sales by payment method for 2016.

According to the report, card payments have overtaken cash for the first time ever, with more than half of all retail transactions being paid for by card instead of cash in 2016.

Overall, 54% of all retail payments – equating to £10.3 billion - was spent on debit, credit or charge cards in 2016. Of this, nearly 43% of retail transactions were paid for by debit card, showing a growth of 4.5%, while cash payments dropped by 5% to 42% of total retail spend.

The BRC attributes the growth of debit card use to the rise in use of contactless, particularly since the limit was increased to £30 per transaction at the end of 2015. A third of all card transactions are now contactless, according to The UK Cards Association.

One of the other findings of the BRC was that the cap on Interchange Fees introduced at the end of 2015 has helped achieve savings for Retailers, enabling investment to be made in POS technology for payment acceptance, particularly in respect of cards, contactless and other new payment applications both online and in store.

Additionally, the BRC said the cost of processing cards remained high for retailers, particularly for credit cards.

It is interesting to reflect therefore upon the impact of the recent announcement by the government about the banning of "rip off card charges" fees from January 2018.

Whilst as consumers we are all aware of the practice of surcharging, particularly in areas such as online airline ticket sales, nevertheless there is likely to be an impact upon prices, particularly for small businesses who may have smaller profit margins and financial resilience than their larger counterparts.

Additionally Visa has announced a 'war on cash' which, depending on how whether and how it is introduced in the UK and whether a similar stance is adopted by other payment schemes, may also result an impact upon retailer and consumer payment behaviour.

Whatever the impact of both these developments and others in the near future, and in spite of the recent assertion by the Chief Cashier of Bank of England that "Technology is not a threat to cash - it provides opportunities", cash as a payment method is certainly facing some strong challenges to its longevity.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Credit Card Migration and Operational Support

"The bank has undergone significant transformation of its card business on both the issuing and acquiring sides. One business partner we have looked to for support in the areas of strategy, major project leadership, management analysis and ongoing business support is Savantor. The Savantor team has contributed to our success as we have leveraged their deep industry knowledge and broad range of operational skills."

Sean Sheehan, Service Management Director - Bank of Ireland

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

Collections Transformation

"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."

Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.