Public reacts to BVIBA’s crackdown on minimum card spending fees
Residents have taken to social media to share their reactions to a notice issued by the BVI Banks Association (BVIBA) on December 10, 2024, regarding compliance with card transaction policies.
The BVIBA cautioned merchants against imposing minimum spending requirements for card transactions or adding extra fees for card payments, particularly during the holiday season. According to the association, such practices violate both the bank’s merchant agreements and the regulations of VISA and Mastercard.
The notice has sparked widespread debate, with many expressing concern for small businesses that are charged transaction fees by banks whenever customers use their cards.
Critics argue that the banks are the primary beneficiaries of these policies. One Facebook user commented, “Small businesses and the common man are the backbone of the economy, and for too long, banks, insurers, and regulators have ignored this fact. It’s high time for a shift in the Virgin Islands.”
While many echoed this sentiment, others suggested that businesses could factor bank fees into their sales prices. However, some small business owners disagreed, noting that incorporating all costs into pricing could make goods unaffordable for customers.
One social media user, believed to be a small business owner, questioned, “If we include all these fees, what will the final cost of goods be? How will the average person afford them, and what will stop them from complaining about high prices?”
The discussion also highlighted the shift towards a cashless society, with some users suggesting that provisions should be made to accommodate this trend. Others pointed out that businesses often enforce minimum spending requirements of $10 or more as a way to offset transaction fees.
The BVIBA advised merchants who are currently imposing such practices to cease immediately. They further encouraged the public to contact their respective financial institutions for additional clarification.
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BVI businesses like to receive cash..otherwise it’s hard to sustain the “local” business models.
By “local” business models you mean not on the books and no tax!
There are two sides to this, but we should not forget that the processing fees the banks charge in the BVI for card transactions are well above what is charged in other parts of the world.
There are also many excellent examples out there of POS systems with integrated card processing that have fees under 2%, but none of them are available in the BVI. This is possibly due to the difficulty in making the transfers to the business through BVI banks but perhaps also the banks here are acting to keep them out.
Businesses here can either use the banks we have and pay their extortionate fees or refuse card transactions. That is not really a choice at all.
Banks, insurance companies & Government here are part of the same cabal. The system is rigged for big businesses (grocery stores, telcomms, car & gas) to fleece the working class.
It is over for thr BVI middle class which has been eroded and diminished over time by poor policies and investments. Anyway possible to squeeze that little extra money/tax out of the middle and lower class is their game.
In 2025 choose where you spend your hard-earned income in supporting the businesses that are not exploiting you and me!
We are so self-centred. This isn’t a BVI problem. This is a standard merchant agreement used all over the world. We are a tiny market, but as usual, we think we are special, and everything should change for us.
Wrong.
Cash less means they want a % of every sale whether or not they support your business or take your risk. I rather cash & alternatives. Any moment the bank can freeze your sales and hold your money. When they say BVI froze Russian money what do you think happened. Back in the past black people would have been excluded and the cash held for next to no reason except being black. Yet some want to go cashless and trust them with your life savings and trust them to track every transaction.
Some times you cant even get your own money out of the bank when you want to. I can go on but I wont. Only to mention the long lines before some of them got more tellers off lunch break, chairs and refreshments but I believe it took people fainting to realize we are not cattle.
is king. Plastic is the banks form of debt collection.
In the UK the charge on a card transaction is typically 0.9%.
In BVI the charge is between 3 and 5%.
This is one of the greatest rip offs of the public of the BVI being perpetrated by some of the worst banks on the planet.
The government needs to step in.