Retailers may end Laser service in AIB price hike

SHOPPERS could face the loss of Laser card services at the checkout after retailers warned of retaliation against plans by AIB bank to start charging for cashback transactions.

A new charge of 20 cent per transaction will be imposed on retailers from next month but they warn they will have no option but to pass it on to customers or withdraw the service completely.

AIB already charges customers 20c every time they use their Laser card for purchases and also charges the shop 20c for the same transaction but now the bank is to charge the retailer an extra 20c when a customer gets cashback.

Vincent Jennings, chief executive of the Convenience Stores and News-agents Association said AIB’s 60c take on one swipe was wholly unjustified.

“This is a phenomenal increase, especially when there is nothing being given in return. Nothing new has happened, there is no new service involved. This is simply the bank looking for what other ways it can make money and picking on a soft option,” said Mr Jennings.

“I can’t see our members accepting having to pay more to hand out their money to their customers without raising a charge themselves.

“What I do see is the distinct likelihood that a number of retailers would choose not to offer cashback which would put customers back in the queue for ATMs at a time when the banks are limiting ATM numbers.”

AIB would not give a reason for the new charge but issued a statement which said only: “Laser purchase with cashback provides many benefits for retailers including an additional service for customers and improves security by reducing cash on a retailer’s premises.”

In the 11 years since the scheme was introduced, Laser has become a huge success for the seven banks and building societies involved.

Some 2.5 million cards are in circulation and 130 million transactions are recorded annually with a total value of more than €9 billion.