Tap-and-go cards herald end of ‘minimum spend’

EVERY retailer will have to offer tap-and-go payments within five years in a shift that could pave the way for the disappearance of the £5 “minimum spend” on cards in corner shops and pubs.

In a major push to create a cashless society, all shops will by 2020 have to install so-called “contactless” terminals to continue taking card payments.

Under the requirements imposed by Visa and Mastercard shoppers must be given the option to pay for purchases by waving a debit or credit card over the card reader. Many bars and newsagents enforce a minimum spend – usually about £5 – if customers want to pay by debit or credit card. This is to cover the cost of the service. However, retailers often waive the fee if the customer agrees to use contactless payment, as it can be cheaper to process and helps speed up sales.

As more people switch from cash to tap-and-go for all their small purchases, banks are being forced to reduce the amount they charge for each card transaction. Experts say the changes will enable retailers to scrap the unpopular minimum spend altogether.

Richard Koch, of the UK Cards Association industry body, said: “Pubs and convenience stores especially are less likely impose a minimum spend on contactless payments because it helps them cut queuing time and make more sales.” From next Tuesday, the maximum contactless spend will rise from £20 to £30.