Originally written by Anna Jordan on Small Business
Restaurants and retail stores are raising complaints about payment processing firms holding onto their money, according to The Times.
Payment companies already impose a transaction fee, causing more problems for stretched businesses as consumers increasingly opt for card and mobile wallet payments.
UKHospitality have not heard any cases from their members, but urge anyone affected to come forward. Kate Nicholls, the organisation’s CEO, told SmallBusiness.co.uk:
“With the bulk of hospitality businesses providing products for immediate consumption, there doesn’t seem to be any reason why merchant services should do this with businesses like cafés, pubs, restaurants or bars.
“If any hospitality businesses have experienced this, then we encourage them to contact us, even if they are not members of UKHospitality.”
The practice is more common in sectors with higher-priced items like holidays and furniture. In the run-up to Thomas Cook’s collapse, the firm’s payment processor lengthened the time it held onto customer money from two days to several weeks. The Times reported that the processor held onto millions of pounds.
> See also: Three ways to reduce chargebacks
Worldpay, First Data and Adyen are expected to review the risk profile of their relationships following Thomas Cook’s demise. The Financial Times says