A business paying excessive costs to cover “worst case scenarios” loses business to the one down the road who isn’t paying out unnecessary costs and strips down what is needed to reduce costs/increase profits. That’s the profit seeking motive and
entrepreneurial spirit in a nutshell.
---------- Post added at 08:49 ---------- Previous post was at 08:45 ----------
Quote:
Originally Posted by Chris
So a £100 transaction attracts £1.50 in fees where previously it was 30p. Sorry but the financial system does actually cost money to operate, inconvenient as that might be, and international transactions cost more. The EU has had a good go at making laws trying to paper over the fact that these were international transactions but in this case those laws are only 5 years old. I’m not going to lose sleep over £1.20. I’d spend more time thinking about whether to spend the £100 in the first place.
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I don’t think it’s about the individual £1.50 - can probably find it down the back of the sofa.
It’s about the inefficiencies this creates across the whole economy as it aggregates over all transactions. This is money being extracted from UK customers they not don’t have to spend elsewhere.