Which? accuse Lettings agents of great credit card Rip Off - is it fair?

Oct. 27, 2011 - PRLog -- I wont hide from this article, but feel it is profoundly unfair as a blanket accusation. This is what they said:

"Estate agents are profiting from debit and credit card surcharges, according to new Which? Money research. The research shows that of the top 20 UK estate agents by branch network size, four - Andrews, Foxtons, Knight Frank and Badger Holdings – charge for debit card transactions, and 13 charge for credit cards when renters pay their deposit. The highest charge for credit cards was 5% from Andrews, well above the estimated 1% to 2% cost of processing a credit card payment. With the most recent figures putting the average national rental price at £713 the credit card charges would add £53 to the typical six-week rental deposit. For London properties this would add £77. For debit cards the highest charge was 0.5% from Foxtons and Knight Frank, although recent Which? research showed the actual cost of a debit card transaction is closer to 10p"

I cannot speak for other agents but wish to clarify why our charges are certainly not a 'rip off'. In the interests of fairness, I record that agents who charge for debit card payments are making money for nothing as the cost to this is actually under £1.

We do not charge for debit cards - however some international debit cards charge us 2.8% which we absorb. Our on-line payment system can identify card type, but cannot differentiate between different card providers who each charge different fees. As such, we took a mean. Further, there is a lot of additional administration work in processing batch receipts. Our charge is 2.5% if tenants wish to pay by credit cards and nothing if they pay by debit card. These charges are clear and transparent and displayed before payment is made.

Do we profit from this - no, and certainly not if you factor in additional administration costs. We encourage debit card payment as its safer and, to be honest, costs us less than accepting cash.

As for the assumption by Which? that the estimated charge for processing is 1% - 2%..... I wish. It may be that for huge national chains who get discounts for volume, but an average agent will struggle to negotiate a charge less than 2.5%. Add in the cost of renting PDQ machines, calls costs and administration and there is little doubt that we lose out on credit card payments. Nevertheless, if its more convenient to customers, its a service we are happy to provide and, clearly, optional.

I feel that Which? could look at other areas rather than one which appears simply headline grabbing.

I went to a restaurant last week and was charged a 300% mark up on a bottle of plonk and charged 12.5% 'service charge' simply for someone pulling out a cork. That was £4.50 for doing something which took 30 seconds. The waiter was on a minimum wage.

Now THAT is a rip off.

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Bushells is one of London's leading Estate Agents. Founded in 1937, we are one of the most successful estate agents in London. We are members of all recognised industry bodies including ARLA, TPO and NAEA.