Notably, this does nothing to stop credit card backers from chargingfees to businesses. End result, more places will require a minimum on credit card purchases.
Just Eat have already added a 50p service charge to all orders, even cash. This legislation should have accounted for that and stopped it before it started.
I mean, what could you do really?
You can't regulate the price on every item in every industry.
If they need to charge more to cover processing fees, there's really no way to stop that.
And some entities will just stop taking credit cards at all. The Inland revenue here has just done that and you can no longer pay your tax bill by Credit Card.
This has nothing to do with consumers. Government wants all transaction to be digitized to eliminate the anonymity of cash. By bringing price parity between cash and credit, they are making credit cards more attractive.
I can't wait to pay the generic 'service charges' on all transactions instead.
but the credit card company is essentially loaning money out at no interest for the first month, the way we get no interest for that first month is these CC fees, so what you're asking for here is impossible and would return us to a less trackable cash society if we revoked any "no interest" setup like this. Governments love record keeping on money transactions for tax purposes, they'd be insane to encourage any more cash transactions.
EDIT: Also the implication of a less trackable cash society is more tax burden being placed on the folks who can't hide their cash flow (people who have a salary over the table). We dont want to punish those people.
All costs are passed to customers in the end.