Linx fees too high

“Customers using Linx honestly feel they can come in and purchase anything for $1.20, but most places do not because whenever you swipe your Linx card, the bank charges the merchant 75 cents for every Linx transaction.

“We could sell a pencil for $1.50 of which we make a 25-30 cents on a pencil, are you going to take a Linx that would cost you 75 cents? It’s a no win situation,” Jadoo told Sunday Newsday last Friday.

Jadoo said customers would come in to purchase a $10 telephone card using Linx, however, his profit was jus 25 cents, a profit of 2.5 per cent.

“It is unfair and unjust. The banks can say anything that they so desire because they are still making their 75 cents. You can lose how much, that does not concern them.

“When I go to the United States and use my credit card, I have to pay the bank charges, why don’t we reverse the same thing here? Instead of the merchant who has to pay so much money, why does not the customer pay the charge of 75 cents. You use your card, you pay, Why must I pay when you use your card?” Jadoo asked.

He predicted that soon many merchants would start returning their Linx machines.

“The banks are seeking their interest. They don’t care if you lose and I find that is very unfair and unjust.

That is why gas stations do not want to accept Linx because the banks are looking to make a profit and to hell with everybody else,” Jadoo said..

“A lot of people have gotten rid of Linx because of the cost factor. Let the customer pay for the service charge, same as the bank.

“They want to pay you half of a per cent interest in the bank, and they are charging you nine and a half per cent, tell me where the equity is in that,” he added.

A bank source said Linx fees would depend on the type of merchant and the bank.

“The fee would vary from the type of merchant and their business and the risk associated with that business. It is a convenience for consumers but what you don’t see is what is connecting that terminal to everything.

“There are servers, wires, transmission. What the consumer and the merchant is not seeing is the infrastructure that transmits that signal to be processed,” the source said.

The source noted that it was illegal for merchants to demand that customers pay for purchases that were over $20 with their Linx.

“That is not part of the agreement, there is no minimum for Linx. You can buy something for a dollar and use Linx. However, you can’t force a merchant to sell you his goods,” the source said.

President of the Bankers’ Association of Trinidad and Tobago (BATT), Anya M Schnoor, said in most developed and developing countries there was a push to reduce the use of cash which was costly to move, store and comes with security concerns.

She said the LINX network has existed in TT for a number of years and provided a safe and secure and channel for clients and merchants to make and receive payments.

“The cost to build and maintain this system and to ensure it remains up to date with all the necessary fraud and other technology enhancements comes with a cost and as such the cost of 75c per transaction we believe is more than reasonable. The system performs the same functions regardless of the size of the transaction,” Schnoor said in an email message.

“In terms of individual business owners making decisions regarding limits on LINX transactions, this is not a legal issue as far as I am aware. BATT would however encourage the continued use of the LINX platform as we continue our drive to digitize and improve the service we provide to all our customers,” Schnoor said.