AIB, Ireland‘s largest bank, have issued notice to retailers that they are to impose an additional 20 cent charge for every “Cashback” transaction using a Laser card in store from October 1st.
The move has angered retailers as they already pay 20cent every time a Laser card is used in store.
According to this morning’s Irish Times, there are 2.5 million Laser customers in Ireland who made 130 million laser card transactions last year. Those who do not have free banking already pay an additional 20 cent for each Laser transaction.
This move will potentially add 50% to AIB’s take from each Cashback transaction while adding 100% to the retailer cost per transaction.
Retailers will consider their position and may resort top refusing cashback to AIB cardholders. The Convenience Stores Newsagents Association (CSNA) which represents 1,500 small and medium sized retailers around the country said yesterday that its members are considering either refusing to give cashback on AIB Laser transactions or passing the charge on to the customer. One additional option open to them, which they may not have yet considered, is to add the cashback amount to the transaction amount when entering into the Laser terminal whereby they would avoid identifying the cashback amount as a separate element of the transaction and incur only one fee.
We’ll wait to see the outcome.