October 19th, 2004


userinfo senji
2004/10/19 19:39:00 - 2½%
Like many other days, I went to Tesco today.

Like many other days, I got a bit confused about my receipt.

Unlike many other days, I remembered to write a livejournal entry about it.

The confusing thing looks like this:

When you pay by card, 2.5% of the total
cost of your shopping is paid by you to
Tesco Card Services Ltd for card handling
services, the remaining 97.5% will be paid
to Tesco Stores Ltd. All customers pay
the same amount regardless of how
they pay.


Why does this strange legalistic thingumy exist?
Current Mood: [mood icon] confused
Current Music: The Countdown Orchestra -- Star Wars Theme
Entry Tags: legal, life 2004, question

< | 17 glosses | comment | > )

userinfo fluffymormegil
2004/10/19 12:02:36
I'm guessing it's a tax trick, or something.
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userinfo crazyscot
[userpic]
2004/10/19 13:10:31
It is: http://ww2.hmce.gov.uk/news/nat-nr-2904.htm and http://www.legal500.com/devs/uk/ct/ukct_252.htm

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userinfo ewx
[userpic]
2004/10/19 15:09:10

two contracts were formed [..] one between DCHS and the customer in respect of the card-handling services at 2.5% of the ticket price

I thought you had to intend to make a contract in order to make a contract. I've never intended to make a contract with any card-handling organization!

I wonder what would happen if I started routinely crossing out the 2.5% rubric?

(...and what if I asked for 2.5% off since I didn't want to pay their card-handling people...)


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userinfo senji
[userpic]
2004/10/19 15:10:03
I was wondering something quite similar.
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userinfo fluffymormegil
2004/10/19 15:59:41
All purchases involve a contract IIRC.
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userinfo ewx
[userpic]
2004/10/19 16:00:17
Yes, but they don't normally involve two.
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userinfo womble2
[userpic]
2004/10/21 00:38:55

"I wonder what would happen if I started routinely crossing out the 2.5% rubric?"

Probably very little. However if lots of people do this then C&E can take the apparently legal tax-dodgers back to court because a significant fraction of their card payments won't include the claimed 2.5% for financial services. I suspect that it would cost the store more to count which of them do then they could save by doing so.


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userinfo senji
[userpic]
2004/10/21 06:46:37
Except that the 2½% rubric is on the receipt; so I can't cross it out in any useful way.
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userinfo womble2
[userpic]
2004/10/21 12:07:00
If it's not on the credit card slip you signed, then I don't see that you're agreeing to it any more than you're agreeing to a EULA by opening a box. It's not a normal condition of sale. You could mention this to C&E.
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userinfo senji
[userpic]
2004/10/21 14:22:59
I didn't sign anything -- Chip And Pin, you know...

C&E ... mmm...
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userinfo nonstick
[userpic]
2005/01/16 12:07:51
I was wondering about this myself, and a bit of googling found your eljay post..

Boots now have signs up next to their Chip and PIN terminals saying something along the lines of "Further to notices posted around the store, by entering my PIN, I agree that 2.5% of the cost of my goods will be paid to BCS Ltd"

Not much way of crossing that one out.

Other useful reading from The Guardian.
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userinfo yrieithydd
2004/10/19 15:45:28
The co-op one is more odd in that it starts `As notified, I agree to pay ...'. I was notified???????? Why do I need to know this?

There are all exceptions (cashback, petrol, concessions and retail export sales).
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userinfo timeplease
[userpic]
2004/10/19 17:20:43
As others have posted, it's a VAT avoidance scam.

To defeat it you should routinely ask for a VAT receipt for all purchases from large retailers. Most (eg. B&Q) will give one to you without any fuss. All must give one to you if you ask for it.
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userinfo king_of_wrong
[userpic]
2004/10/20 04:08:48
In high school, I used to have a teacher who would go into stores like Debenhams, take his goods to the counter and say "Will it cost any more if I pay by credit card?" they'd tell him that it wouldn't and so he'd then insist on a 2% discount as he was paying cash...
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userinfo senji
[userpic]
2004/10/20 04:10:22
Did that work?
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userinfo girlofthemirror
[userpic]
2004/10/20 05:31:59
Shops and thing have to pay quite a bit to putcash in the bank anyway. Probably not 2%, but still a considerable amount.
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userinfo hairyears
[userpic]
2004/10/23 15:10:42
Not as much as the merchant handling fees charged for card payments!
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< | 17 glosses | comment | > )

2½% - Squaring the circle...

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