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Hi!
Recently I have had issues with three local councils in Scotland - Dundee, Glasgow and Highlands. All three of them charge a "convenience fee" when paying for the on-street parking through the apps.
I believe, that this breaches the Payment Services Regulations (2017). I am wondering, if any of you would share that view.
Why I believe, that mentioned councils are in breach of the regulation:
1) The Regulations clearly mention, that the surcharge is prohibited for non-commercial cards and non-commercial non-card payment methods, such as e-money:
* “Fees any payee must not charge any payer
6A.—(1)*A payee must not charge a payer any fee in respect of payment by means of—
(a)a payment instrument which—
(i)is a card-based payment instrument as defined in Article 2(20) of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions(2); and
(ii)is not a commercial card as defined in Article 2(6) of that Regulation; or
(b)a payment instrument which—
(i)is not a card-based payment instrument as defined in Article 2(20) of that Regulation; and
(ii)would not fall within the definition of commercial card at Article 2(6) of that Regulation if, in that definition, the reference to any card-based payment instrument were to any payment instrument and the reference to such cards were to such payment instruments; or
2) RingGo website say:*We merely take payments on behalf of the parking operators and bank all monies to their own account, inclusive of the convenience fee. - which just confirms, that they are a payment provider.
3) The invoices for parking are issued by the councils and both the parking fee and the "convenience fee" is levied by the council.
4) I have made FOI request to find out about how much does it cost the council to operate parking machines and the cashless systems. All of them confirmed costs to operate the parking machine infrastructure to be around 12-22p per transaction. All of them also confirmed that there is no cost associated to them to use RingGo as all cost is passed onto users in means of a "convenience fee".*
What do you think about it? Would you agree with my point of view there? What would be the appropriate course of action to force councils to comply with the regulations?
*
Recently I have had issues with three local councils in Scotland - Dundee, Glasgow and Highlands. All three of them charge a "convenience fee" when paying for the on-street parking through the apps.
I believe, that this breaches the Payment Services Regulations (2017). I am wondering, if any of you would share that view.
Why I believe, that mentioned councils are in breach of the regulation:
1) The Regulations clearly mention, that the surcharge is prohibited for non-commercial cards and non-commercial non-card payment methods, such as e-money:
* “Fees any payee must not charge any payer
6A.—(1)*A payee must not charge a payer any fee in respect of payment by means of—
(a)a payment instrument which—
(i)is a card-based payment instrument as defined in Article 2(20) of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions(2); and
(ii)is not a commercial card as defined in Article 2(6) of that Regulation; or
(b)a payment instrument which—
(i)is not a card-based payment instrument as defined in Article 2(20) of that Regulation; and
(ii)would not fall within the definition of commercial card at Article 2(6) of that Regulation if, in that definition, the reference to any card-based payment instrument were to any payment instrument and the reference to such cards were to such payment instruments; or
2) RingGo website say:*We merely take payments on behalf of the parking operators and bank all monies to their own account, inclusive of the convenience fee. - which just confirms, that they are a payment provider.
3) The invoices for parking are issued by the councils and both the parking fee and the "convenience fee" is levied by the council.
4) I have made FOI request to find out about how much does it cost the council to operate parking machines and the cashless systems. All of them confirmed costs to operate the parking machine infrastructure to be around 12-22p per transaction. All of them also confirmed that there is no cost associated to them to use RingGo as all cost is passed onto users in means of a "convenience fee".*
What do you think about it? Would you agree with my point of view there? What would be the appropriate course of action to force councils to comply with the regulations?
*
