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Five reasons to offer contactless payments

Here at CheaperPay, we fully believe that contactless payments are the future for all businesses, regardless of size – and here are five reasons why!

1) Simplicity
This one speaks for itself. The simplicity of contactless payments has revolutionised the transactional experience for both customers and businesses.
Transactions can now take place at a fraction of a second, affording to a more positive customer experience – and that can only be a good thing!

2) Time-Efficiency
Time is becoming an increasingly rare commodity in the lives of the full-time worker. We simply don’t have time in our day to queue, key in PIN numbers or wait for the ‘correct change’.
Contactless payments solve all these issues – customers can check out in an instant, saving time for the more important things in life.

3) Security
Contactless payments account for just 0.02% of all card fraud transactions on the planet. Hi-tech anti-fraud technology is utilised by many systems, ensuring safe and secure payment for both customers and businesses.

4) Increased quantity of transactions
Customers who pay with cash have an obvious limit as to how much they can spend in your store.
Offering a contactless payment solution does not only speed up the transaction process, it may prompt customers into spending more on your products – safe in the knowledge that the buying process is quick, simple and secure!

5) Customer Retention
A summary point here, but still relevant! Customers who are regularly receiving quality, efficient service from your business will be far-more inclined to return again and again. This will build up a great rapport with regular customers and greatly enhance the reputation of your business!

So, there you go. Go Contactless today with CheaperPay!

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5 Tech Payments to Look out For in 2017

The last few years have witnessed a huge change in the way we make payments. Technology is evolving at a faster rate than ever before and the payment sector is by no means getting left behind. As of March 2016, there were over 86 million contactless card users in the UK marketplace, proving that touch-and-go is the future, and here we look at five other payment technology trends that may rise to prominence in the very near future.

1) Fighting Fraud with Fingerprints
While using your finger tips to process a payment would represent the ultimate in digital transactions, it’s only the beginning! The payment industry, according to BluePay, “could soon begin using iris scans, voice-recognition and even DNA verification. There really is no limit to how far biometric payment technology can go.”

Fingerprint Tech

Fingerprint Tech


2) The Flourishing of the Bitcoin Era
Last year was an excellent one for bitcoin. Last January, bitcoins were valued at $350 and now they are above $900! Traditional financial institutions are beginning to adapt to this technology and invest in it. People are starting to recognise the value that the blockchain provides with smart contracts, cloud storage, and security.

3) Wearable Payments
Visa announced at this year’s SXSW that it’s testing sunglasses capable of making contactless payments, whereas Barclaycard teamed up with Lyle & Scott last year with a foray into the world of trend-setting wearable’s by designing a contactless jacket!

4) Invisible Payments
Businesses such as Uber and Deliveroo have mastered the art of invisible payments. With regards to Uber, their easy account set-up and request-a-driver function offers customers a hassle-free transaction. Just jump in and enjoy your journey without having to worry about fumbling around for your cash! Expect many businesses to follow suit.

5) Social Network
Facebook Messenger has already jumped into the payment pool and added a payment feature for iOs and Android in the US. For those in America, you simply add a debit card to your Facebook account and then send money directly to your Messenger contacts!

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Reasons why your Business NEEDS to make the switch to contactless payment solutions

More than just a saying or statistic, it has become reality that ‘Businesses that decline card payments are losing out’.

Sorry, we don’t take card payments’ should be a thing of the past as Britain quickly converts to a cashless society, not taking card payments should be something rarely heard of by now. Unfortunately, this is not the case just yet. 75% of all UK retail purchases are made by card; and yet still, more than two thirds of British small to medium sized businesses (SMEs) still don’t accept card payments.

With Cheaper PAY’ment solutions you can:

  • Accept Payments over the phone
  • Accept online Payments
  • Accept smart phone payments
  • Accept Chip ‘n’ Pin payments

How will these benefit your business?

  • Never miss a sale – Customers are able to buy your products anywhere at any time with secure online payments which means more sales for your business.
  • Beat your competitors – Customers are more likely to shop at a store that offers card payments.
  • Happier customers – Card payments are processed in a matter of seconds so customers can quickly continue with their day and you can get on with serving the next customer.
  • Lower bank fees – Handling less cash means fewer trips to the bank and more money back into your business.
  • More security – Extra features protect your business from fraudulent transactions and tell you immediately if a customer’s funds have not yet cleared.

Our low transaction costs are what make Cheaper Pay one of the most affordable merchant service suppliers available. Many card machine companies will charge you for a service that is designed to benefit growing businesses rather than hinder them.

At Cheaper Pay, we believe in supporting and innovating businesses with evolving technology. That is why we offer FREE quotes and a 3 months’ free trial to ensure that the payment solution you have chosen is compatible for your business.

To begin your journey to contactless payment get your free quote HERE.

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How card payments have developed over the past decade

Over the past decade, UK consumers have adapted to the quick pace in which technology develops, including the way they pay for goods. Payments made on cards now account for 78.5% of all retail purchases, a huge increase from just 55% back in 2006!

 

2006 – 2008

One of the main reasons for this huge increase is the adoption of payment methods such as Chip and PIN and contactless, making card payments faster than using cash and allowing business owners to reduce the amount of queuing time. This benefit has led to an increase in the amount of independent businesses deciding to accept card payments of a massive 43% since 2006.

 

2008 – 2010

Consumer spending patterns continue to change to match the technology with fewer people in the UK actually carrying cash because they are quickly discovering the convenience and security of cashless payments.  There is no doubt that numerous retailers and banks are starting to see the changes in how people prefer to pay for their in-store purchases and are now more inclined to encourage customers to carry less cash and pay for smaller purchases (usually below the sum of £30) on card with ‘tap and go’ contactless payments.

 

2010 – 2015

Growth in unattended retail terminals in supermarkets, chemists and petrol stations has also boosted card use and debit cards are benefiting significantly from contactless payments, as their popularity for lower value everyday payments carries on increasing.

 

In January 2015, contactless spend in the UK totaled £287 million, rising rapidly throughout the year to reach £1.02 billion in November 2015 alone. In the same year, the number of contactless transactions carried out by consumers in Europe passed the one billion mark.

 

2016

Now that we’re in 2016, contactless mobile payment technologies, such as Apple Pay and Android Pay, have given consumers more choice in the way they want to pay. According to a report, 40% of consumers with an Apple device have adopted the Apple Pay service since its launch in July 2015.

 

It is predicted that over the next ten years, consumers will continue to favour using card payments to cash. Last year, nearly half of all payments were made in cash, however it is predicted that debit cards alone will overtake cash as the most frequently-used method of payment in just five years.

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CheaperPay VS The Major Banks

We understand that many people, for peace of mind would opt to go to their bank for their business needs. However, in an age of uncertainty moving forward with cases such as Brexit, we would ask that you look into our services and how we can provide the same service as your bank for your business, but for LESS.

Starting a new business is a risk – with you investing in a business it’s important to make savings wherever you can. That’s why when you sign up we give you three months FREE to ensure that your business is definitely up and running. Unfortunately, signing a contract with a bank means you are unlikely to get the same benefits.

We make sure that when you sign up with us, you get a personal touch. We make sure you’re up and running with our machines within 2 weeks and that you get a monthly statement every month. As well as that, you’ll get the peace of mind knowing that when a transaction is made, it will appear in your business account within 2 days plus the transaction date.

You are also likely to face extra charges when you apply with the bigger banks, and hidden fees that could hinder and hurt you financially in the long-term. We make our service crystal clear, and we wanted to give you that extra peace of mind by giving you not only three months free, but even £50 when you refer a friend to us. We endeavor to make your business feel part of a community.

For more on how we can help transform your business, contact us today!

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Our Simple & Uncomplicated Sign Up Process

GET A QUOTE
Call us and speak with one of our accredited advisers for a free quote.

REGISTER OVER THE PHONE
We are a ‘Green Company’, CheaperPay reduces cost and waste by arranging everything over the phone. No paperwork required.

TERMINAL ARRIVES
We aim to have your terminal delivered as early as 5 working days.

INSTALL IN SECONDS
It is a quick and easy process of installation. If you are unsure or not ‘Tech Savvy’ don’t worry. CheaperPay has a help desk who are more than happy to assist installation.

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Want a FREE card machine for your business?

Take a look at our Ingenico range of card machines – fast and reliable, the perfect way for your customers to pay!

And the best part? Get one for FREE – all you have to do is sign up with us!

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Card Payments: The Cost Of Staying Static

More and more businesses are realising the potential of adopting card payments as well as cash transactions. With debit and credit cards being used as a consumer’s preferred payment method these days, it’s no wonder that the credit card industry is booming and contactless payments are taking off as much as they are.

However, as a small business, you may be concerned about the cost of having card payments, rather than the additional profit you’ll receive overall. These fears often lead to cash-only payment transactions for many small businesses, until they can accept card payments.

But when taking a look at the overall statistics of card payments, your business is more likely to succeed in the long term than fail.

The Statistics

Roughly, small businesses and SMEs who do not accept card payments are losing out on £8.8bn profit. £52.6 billion is spent by consumers using card payments in the UK with 70% of consumers prefer card to cash. Meanwhile, 32% of UK adults would not purchase from a store that did not accept card payments.

With these alarming statistics from the general UK public, it seems likely that a small business would struggle in it’s first year by not allowing card payments, unless the product was unique enough to suggest otherwise.

The Conclusion

Long term numbers and statistics are more reliable than short-term figures and your fears. Starting a new business comes with all kinds of risks, but being prepared is the most important factor when implementing new systems. Embrace the digital age and now!

Here at CheaperPay we understand the importance of reducing the costs for your new business. This is why we’re offering 3 months FREE when you sign up with us! Contact us for more information.

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Take visa payments for FREE!

**EXCLUSIVE OFFER**

Get your first 3 months with us FREE!

Drop us a message or Quote ‘social media’ when you sign up – it’s as simple as that!

Hurry, this offer won’t last forever!

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Pepare for the next generation of card payments

Paying for your shopping using your smartphone just got even easier as Mastercard expands the reach of its mobile payment app.

The humble credit and debit card may be a step closer to extinction thanks to a new announcement from Mastercard.

The company has revealed a major expansion to its Masterpass digital wallet service that will allow customers for the first time.

Going forward, Masterpass should now work seamlessly on your smartphone, wearable device or tablet, letting you pay online, in-store, or using the NFC-enabled app with just one touch.

Masterpass makes paying for goods even easier

Masterpass makes paying for goods using your smartphone even easier

Mastercard says that the new service, which links to your current account, is perfect for a wide ranges of use cases, from paying for the tube in the morning to splitting the bill at lunch and ordering your weekly shop online.

Banks will also be able to build Masterpass into their own apps, bringing together all your various digital payment methods and apps in one place.

The company says that around 80 million people around the world will be able to benefit automatically from the new service, which launches in the US today before expanding to Europe later next year.

The news comes as competition in the mobile payment market continues to increase, as big players such as Apple and Samsung throw their weight behind the technology.

Since its launch in 2014, Apple Pay has helped popularize the idea of paying for good using a mobile phone in the UK, with thousands of businesses across the country supporting the technology.

 


Moore, M. (2016) Home. Available at: http://www.express.co.uk/life-style/science-technology/689626/mastercard-masterpass-contactless-shopping-payment-app-nfc (Accessed: 15 July 2016).

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London’s contactless Tube payment system is going global

Other cities will soon be able to use TfL technology to develop their own contactless payment systems.

The contactless payment system used on London’s transport network will soon be modified for use in other cities.
A deal between Transport for London (TfL) and transportation firm Cubic will see the latter adapt the contactless ticking system and license it around the world. The deal, worth up to £15 million, will help TfL ensure fares don’t rise for the next four years, the mayor’s office said.

Cubic will be given access to London’s contactless system to allow it to tailor it to other transportation networks. The company first worked with TfL in 2003 to develop the technology behind Oyster and has since helped upgrade the system to support contactless payments from debit cards, Apple Pay and Android Pay.

Outside London, CTS provides similar ticketing technology to Brisbane, Chicago, Sydney and Vancouver. The non-exclusive deal with TfL will allow the company to integrate technology developed for London’s network into other transport systems.
According to TfL, more than 500 million journeys have been made by more than 12 million unique credit and debit cards since the contactless system launched on London’s busses in December 2012. The technology was expanded to cover Tube and rail in September 2014 and has been used by customers from 90 different countries with one in ten contactless transactions in the UK made on TfL’s network.

Cubic continues to run TfL’s ticketing and fare collection services on 8,500 busses, 1,900 Underground and Overground ticket gates and 1,600 ticket machines across the network.

 


Temperton, J. (2016) London’s contactless tube payment system is going global. Available at: http://www.wired.co.uk/article/london-underground-contactless-payments-licensing-deal (Accessed: 15 July 2016).

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Contactless payment coming to Birmingham buses and trams

The way we pay for public transport will become a lot more straight forward.

Catching the bus in the West Midlands is about to get a lot easier.

National Express West Midlands has announced plans to fit their buses with technology to allow contactless payment.

Their 1,500 buses in the area with take payments from bank cards, smartphones, smart watches, cash and Swift cards.

Peter Coates, managing director of National Express West Midlands, said: “We know our customers want the choice of using contactless when they travel.

“Only a month ago, we introduced it on the Midland Metro and already 7% of passengers buying a ticket on board are using contactless.

“So, as part of our pledge to the West Midlands Bus Alliance to get more people travelling by bus, we are investing in contactless because it makes journeys quicker and easier for passengers.”

The new technology will appear first on buses in Coventry by the end of the year before coming to Birmingham and the rest of the West Midlands over the following two years.

It is predicted to speed up bus journeys because passengers will spend less time buying a ticket at bus stops.

A report into the effects of congestion on bus passengers recently said: “If London-style cashless buses with contactless payment and smart ticketing could be extended to the rest of the UK, bus journey times could be improved by up to 10% by halving dwell time at bus stops.

Soon you will be able to pay your bus fare with your debit card.

“In urban conditions, dwell time makes up between 25% and 33% of total journey time. The big five bus operators in the UK have set a target to introduce contactless bus transactions by 2022.

“They should do everything possible to accelerate this, and it is realistic for them to achieve this goal in the large conurbations within three years.”

 


Beardsworth, L. (2016) When will contactless payment be available on Birmingham buses?Available at: http://www.birminghammail.co.uk/news/midlands-news/contactless-payment-coming-birmingham-buses-11609505 (Accessed: 14 July 2016).

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EU ban on credit card fees backfires – you’ll still pay 2.5pc to spend

Consumers are still having to pay high fees when using credit cards despite new EU regulations that have capped transaction costs.

At the same time, the rules have resulted in millions of cardholders losing popular perks such as cashback.

As of December 2015, the EU ruled that the “interchange fee” – paid in the first instance by the shop – on credit and debit cards could be no more than 0.3pc and 0.2pc repectively.

Up to then the typical fee was 0.8pc, with shops passing on the cost to customers either through higher prices or explicit credit card usage fees.

The intention of the EU’s new rules was to lower this cost and with the hope that consumers would benefit from lower prices and fees.

But many readers have contacted Telegraph Money confused as to why they continue to pay far more than 0.3pc when using a credit card. Airlines such as Ryanair and Easyjet still add a 2pc charge, for example, and some cinemas charge over 5pc –in the form of fixed-sum “card handling fees”.

The regulations make clear that shops and other sellers of services “must not charge consumers, in respect of a given means of payment, fees that exceed the costs borne by the trader for the use of that means.”

In other words, these fees shouldn’t be used to boost retailers’ profits.

But with some firms charging nothing, and others 2pc or more, that is precisely what Your Moneyreaders, among others, believe is happening.

James Daley, managing director of consumer campaign group Fairer Finance, said: “There doesn’t seem to be anyone policing credit card charges. Nobody is stepping up to these companies and asking them why they apply a 3pc surcharge when others process cards transactions for free.”

According to the Department for Innovation and Skills, unfair surcharges are only looked into when there is a complaint. The first point of call is consumers’ local trading standards office.

Complaints are rare, partly because the sums are often small – but also because the companies that levy the charges are quick to justify them.

The industries that charge

Richard Koch, head of policy at trade body, the UK Cards Association, said the worst offenders are airlines, cinemas and travel agents.

When paying for a flight, customers could expect to pay a 2pc credit card charge with Ryanair. EasyJet applies the same 2pc charge plus a £13 “administration fee” which it adds to all bookings. Flybe and Monarch charge 3pc.

Ryanair told Telegraph Money that the charge reflected the cost of processing credit card payments, including bank fees.

Easyjet took the same line. A spokesman said: “The 2pc transaction fee applied to credit card payments covers all costs associated with processing the transaction of which the bank charge is just an element.

“Other associated costs have increased significantly, particularly in relation to card data security.”

Online travel agents apply charges too. Customers who book a trip through Travel Republic could expect a 1.99pc surcharge if paying by credit card and Thomson applies a 1.5pc fee.

Rail firms and cinemas also charge. Everyman Cinema adds 75p to every ticket booked online.

Even the Government charges taxpayers who pay with credit cards – although here at least theses fees appear to be falling.

Until recently, the government charged a 1.5pc fee for those who wanted to pay tax by credit card. As of April 1, it has been reduced to “better reflect the costs associated with different credit cards.”

When asked about the varying costs, an HMRC spokesman said: “We don’t make a penny from credit card charges. We are merely passing on what we are charged for processing a credit card payment.

“We have introduced and published separate rates to better reflect the costs associated with different credit cards.”

A surcharge is not applied when paying for driving licences and passports. However, the DVLA does add a £2.50 fee to vehicle tax payments by credit card which it says cover the costs of processing the payment.

A number of high-profile firms, such as Trailfinders, do not charge customers for using credit cards.

A Trailfinders spokesman said: “Unlike other travel companies, we don’t charge extra for the use of credit cards or unwanted hidden extras, nor do we charge a premium rate telephone number.”

Sainsbury’s and online marketplace Amazon also do not add on a surcharge.

Homeware retailer IKEA dropped its fee in 2010.

Cashback rewards cut

While the rules appear not to have stopped some firms from levying high card fees, they have had another distinctly negative impact. This is the dramatic decline in cashback and other cardholder perks.

Capital One, one of the biggest credit card providers, was the first to cut its cashback scheme.

It withdrew all of its reward cards in April 2015, saying the EU rules meant they were “no longer sustainable.

A month later, RBS and Natwest announced the end of the “YourPoints” scheme which gave customers one point per £1 spend.

War workers queuing for a midnight show at the cinema. circa 1940

A 75p “card handling fee” applied to your cinema ticket may not seem much – but it could be 5pc of your ticket

 

Tesco Bank* was another provider which slashed its rewards scheme. In November, it announced that customers would need to spend £8 outside of Tesco to earn one Clubcard point, instead of £4 previously.

At the time, a Tesco spokesman said: “As a result of changes in the credit card industry taking affect this year, the amount that card companies earn from businesses who accept credit cards is reducing.”

M&S Bank also cut rewards. Customers were told they would earn one point for every £5 spent from February 2016, instead of the usual £2.

Instead of reducing the cashback, some providers increased the annual credit card fee – Santander’s 123 credit card* went from £2 to £3 a month in January.

Santander suggested the EU commission ruling was part of the decision.

It added: “ The European commission ruling on interchange has significantly reduced the fees banks receive.”

European Commission competition spokesman, Yizhou Ren, said it was too early to judge whether costs borne by consumers would fall.

“It is quite possible that these reductions in interchange fees have not yet been passed on to merchants,” she said.

What to do if you think the surcharge is unfair

If you feel like your credit card costs is unjustified, the first thing to do is to complain to the retailer.

If this doesn’t work, you can complain to your local authority’s trading standards officers.

Another option is to try alternative dispute resolution where an independent party will look at your case to try and help you and the retailer to reach an agreement. According to Citizens Advice, most judges will expect you to try this before taking the matter to court.

 


Murray, A. (2016) EU ban on credit card fees backfires – you’ll still pay 2.5pc to spend. Available at: http://www.telegraph.co.uk/personal-banking/credit-cards/eu-ban-on-creditcard-fees-backfires–youll-still-pay25pc-to-spen/ (Accessed: 7 July 2016).

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50 years on: How credit cards changed our relationship with money

Fifty years ago this week Barclaycard issued the first credit cards in the UK.

Half a century on, consumers are used to a range of convenient ways to pay, but back in 1966 there was a feeling of change when people tried to brandish their exciting new plastic cards.

“When it arrived I didn’t really know what it was,” admits Liz Hodgkinson, who was a fresh-faced 22-year-old just out of university.

The company sent out some 1.25 million plastic cards to Barclays customers from 29 June 1966 and while some sent them back or never used them, many, like Liz, a writer, embraced the new way of paying.

“There was an explanatory letter from Barclays which said it was issuing the cards to its best customers. It was a terrific revolution as far as women were concerned as previously you had to have a male guarantor to get credit.”

Liz Hodgkinson in 1966 and today

Liz Hodgkinson in 1966 and today

At the time, the bank said: “[Barclaycard’s] purpose is to reduce the use of cash in shopping and other transactions and the scheme is designed to appeal not only to those who must travel and spend a good deal of money in restaurants, but also to the everyday shopper throughout the country.”

It also stressed the benefits to retailers and businesses by pointing out that the card would help in “reducing or eliminating the book-keeping now needed to maintain customers’ credit accounts.”

‘Made me feel special’

Once she’d worked out its advantages, Liz used her card as soon as possible.

“I realised that I could buy something without having to pay for it there and then and could have three weeks’ grace. It meant I didn’t have to wait until payday.

“It made me feel very special. My husband banked at Lloyds at the time so didn’t get one.”

In fact it took Barclays’ High Street rivals six years to respond.

Then and now

By the time a group comprising Lloyds, NatWest and Midland (now HSBC) launched the now-scrapped Access card in 1972, there were 1.7 million Barclaycard holders.

Today the company says it has 10.5 million consumer customers as well as many more business customers.

Graphic showing key stats of 50 year anniversary

In the intervening period, the world of plastic cards has changed completely.

In 1966 Barclaycard charged an annual interest rate of 1.5% but expected payment by the end of the month.

The idea of revolving credit, where a card can be used to maintain a longer borrowing, only started in 1967 when Barclaycard offered up to three months’ credit. Now, of course, it’s possible to be in debt to a credit card for a lifetime and the average interest charged on outstanding balances is 18.9%.

The borrowing limits in 1966 were much more modest, too. Cardholders were offered up to £100 worth of credit. Now the average is around £4,000, the company says.

Looking ahead, plastic cards will take over from cash to become the UK’s most frequently used payment method by 2021, reckons Payment UK.

The growth will be driven by “the next generation of account holders”, says the UK Cards Association as “younger people are more likely to embrace new technologies such as contactless cards and mobile payments.”

Barclaycard being sold in 1966

Paying on plastic has come a long way since 1966, with the introduction of debit cards and contactless payment

But the older generation is getting in on the act, too. Liz Hodgkinson, now 72, reveals: “I have an app on my phone to make contactless payments,” although she admits: “It was set up by my grandson!”

Debt warnings

While the introduction of plastic in 1966 may have given cardholders like Liz a feeling of confidence, the evolution of the credit card also meant the danger of getting into debt very much became a reality.

“I was elated to get an Access card when I was aged 18,” says Karen Wake, 55, a pension expert. But her happiness didn’t last. “By the age of 25 I had built up £30,000 worth of debt.

“I worked hard to pay it off in five to six years and have had no debt since then,” she says. “Despite the fact I now work in the financial services industry, that didn’t equip me to manage my finances at a young age.”

Today, many people happily use credit cards for convenience – often earning rewards or cashback – while paying the balance off every month to ensure there are no charges.

But overspending and building up long-term debt remain big problems.

Mike O’Connor, chief executive of the debt charity Step Change, says: “The average credit card debt we see is £8,403 and last year we dealt with more than 200,000 people with £1.7bn of credit card debts.”

He says the Financial Conduct Authority should reform the market to ensure that credit cards work better for consumers, especially those in financial difficulty.

“Small changes to existing rules, such as increasing minimum payments from 1% to 2% of the balance or fixing minimum repayments so that they don’t fall as the balance declines, could save people thousands of pound and cut years off repayment periods,” says Mr O’Connor.

 


Read, S. (2016) 50 years on: How credit cards changed our relationship with money. Available at: http://www.bbc.co.uk/news/business-36518248 (Accessed: 5 July 2016).