Key Summary
- Dhamecha Group revises card fees after retailer backlash and protests
- New rates: 0.2% on debit cards, 0.75% on credit cards
- Reiterates about no fees on cash, personal cards, mobile app payment and bank transfers
Dhamecha Group has officially revised its corporate card handling fees, thus forcing to absorb a significant portion of the card fees, after a strong opposition from independent retailers over the initially proposed charges.
In a communication sent to retailers, also shared with Asian Trader , Dhamecha directors acknowledged the wave of dissent, both online and at depots, that erupted after their initial fee announcement in May.
“We have listened to your views and have taken the decision to absorb an even greater portion of the fees,” the statement said.
Effective from July 1, the updated charges are as follows:
- Corporate / Business Debit Cards – 0.20 per cent (maximum charge £2.50)
- Corporate / Business Credit Cards – 0.75 per cent (maximum charge £25.00)
This marks a significant climbdown from the earlier structure, which proposed fees as high as 1.25 per cent on business credit card transactions and 0.7 per cent on Business Mastercard debit cards.
The fee on Business Visa debit cards had remained at 0.2 per cent, capped at £2.50, a rate that has now become standard across all business debit cards.
Dhamecha Group has reiterated that there are various alternative payment methods that do not incur a fee including, cash, personal cards, mobile app payment and bank transfers (via the Wallet).
The fee rollout in May sparked widespread anger, with retailers describing the charges as an unnecessary burden at a time when operational costs are already soaring.
Some took to social media to express frustration, while many staged protests at depots to voice their dissent.
For many retailers, the decision to charge business card users felt like an attack on convenience and safety, particularly when using personal cards or carrying large sums of cash isn't practical or secure for regular high-volume transactions.
Talking to Asian Trader, retailer Avtar Sidhu called the move “punitive” for small businesses.
Meanwhile, Kam Sanghera, MD of symbol group Select & Save, noted that the issue had created a rare moment of industry-wide unity.
“For the first time in years, I’ve seen genuine unity among independents and that says something,” he remarked.
However, some retailers like Godhania, though not happy with the extra charges, still labeled the wholesaler's decision as "a bold move", saying the wholesaler could have just increased their pricing structure instead of the new charges.
Retailers by large admit that Dhamecha Group usually offers the "best-in-the-industry offers", that make sourcing from its cash and carry a fruitful excercise.
While the revised structure is still not entirely fee-free, it is being seen by many as a step in the right direction but also a reminder that independent retailers, when mobilised, do have some collective power to influence policy decisions.
