The FSB chairman said that it was “hypocritical” for HMRC to ban payments using personal credit cards while small companies had to absorb the costs.
Cherry stated: “Small businesses don’t want to pass on card fees to their customers, so it’s high time for policymakers and businesses to work together to bring down the charges levied by card providers.”
Yesterday, American Express welcomed the said move, saying that it would “create a level playing field for consumers and will give them the confidence to use the payment method of their choice.”
Removing credit card fees for customers is a part of the Open Banking overhaul which starts today, in which individuals can grant approved third parties – including accountants, price comparison sites, and finance providers – with access to their current account transaction information.
Cherry stated: “The potential for Open Banking to inject fresh competition into a whole swathe of sectors is huge. As things stand, too many small firms aren’t accessing the banking and finance routes that are right for them. Allowing providers direct access to the information they need to tailor offers and vet applicants could help change that.”