The use of debit cards and digital payment wallets is currently permitted for a range of gambling and non-gambling activities in land-based gambling venues in Great Britain. The Gaming Machines (Circumstances of Use) Regulations 2007 prohibit the direct use of debit cards on gaming machines. The full regulations can be seen here: https://www.legislation.gov.uk/uksi/2007/2319/contents/made

In our manifesto, we set out our intention to reduce gambling-related harm, strengthen protections for those at risk, and work with the industry to ensure responsible gambling. We are in the early stages of the new Government and are still considering the full range of gambling policy. We will consider the best available evidence from a wide range of sources to inform decisions on how best to fulfil our manifesto commitments.

To ensure access to cash is protected, the government is currently taking legislation through Parliament as part of the Financial Services and Markets Bill. Following a public consultation, the Bill will establish the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provide it with appropriate powers to seek to ensure reasonable provision of withdrawal and deposit facilities. In exercising its powers, the FCA must have regard to any local deficiencies in the provision of cash access that it has identified and considers to be significant. The government’s view is that this will allow for consideration of local circumstances in all parts of the UK, and will help ensure the most vulnerable are protected. Further details about the Bill can be found on the Parliament website.

This Bill builds on the government’s longstanding commitment to safeguard financial inclusion across the UK, including via the provision of basic bank accounts. Existing legislation requires the nine largest personal current account providers in the UK to provide basic bank accounts, so customers are equipped with a bank card and can access banking and payment services.

The FCA has a considerable evidence base on cash provision and use across the UK. Analysis that was published by the FCA in February 2020 found that 5.4 million people are still reliant on cash. Meanwhile, the FCA’s analysis shows that, as of the end of 2021, over 95% of the population are within two kilometres of a free-to-use cash access point, such as a free-to-use ATM, bank branch or Post Office branch.

Finally, Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available on the gov.uk website.

Where a customer grants standing authority to a merchant, both parties agree to the terms under which recurring payments can be taken from the customer’s account. The FCA encourages merchants to ensure that the continuous payment authority agreement sets out clearly the amount that will be taken in each transaction, and encourages merchants to give the range within which the amount may vary. Under the Payment Services Regulations 2017, if the amount of a payment transaction exceeds the amount the customer could reasonably have expected in the circumstances, the customer is entitled to a refund of the full amount of the transaction from their Payment Service Provider.

As for recurring Direct Debit payments, the Direct Debit Guarantee provides for advance notice to be given to customers for any changes to the amount, date, or frequency of a Direct Debit as instructed by the customer. Notice periods can be agreed between individual customers and merchants. The Direct Debit Guarantee is not a statutory protection, but part of the Bacs Direct Debit scheme rules, operated by Pay.UK.

More broadly, the Government is committed to tackling so-called subscriptions traps and other business practices that harm consumers. In response to growing concerns on this matter, the Government published a consultation which closed on 1 October 2021. It sets out our commitment to tackling problems encountered by consumers when taking out a subscription contract, including making it easier for a consumer to cancel an unwanted subscription. For further information the proposals can be found at:

https://www.gov.uk/government/consultations/reforming-competition-and-consumer-policy

A continuous payment authority (sometimes called a “recurring” or “automated” payment) is a regular payment, where a payer has given consent for a firm to take one or more payments from a customer’s payment account. These are often established to enable regular payments to be made for goods or services via a payment card – for example, for a magazine subscription – and are distinct from Direct Debits. A retailer or supplier is not permitted to take a recurring payment without authorisation from the cardholder.

The Payment Services Regulations 2017 provide for unauthorised transactions to be refunded immediately. The Financial Conduct Authority (FCA) has published advice to consumers about continuous payment authorities and their rights to cancel them. In its published guidance on the regulations, the FCA states that consumers have the right to cancel recurring payments at any time before the end of the business day before a payment is due to be made, and to obtain an immediate refund from their payment service provider if any future payments are debited from their account after they have revoked their consent.

Different payment schemes may offer additional protections to customers. The Direct Debit Guarantee is an additional safeguard for customers who initiate Direct Debits, and applies to all banks and building societies taking part in the Bacs Direct Debit scheme, operated by Pay.UK.

The Senior Deputy Speaker has asked me, as Chair of the Services Committee, to respond on his behalf. The full amount of any tip paid by debit card, or any other form of payment, is distributed amongst Catering and Retail staff, less a deduction for Employer’s National Insurance at the appropriate rate.

Gratuity payments are made to staff via the payroll, therefore a deduction for tax and Employee’s National Insurance is made at the relevant rate.

Any administration charges linked to payments via credit or debit cards are not deducted from the gratuity amount.

The Government set up the Financial Conduct Authority (FCA) to protect consumers from the harm that can be caused by bad conduct in the financial services industry. In 2015, it also set up the world’s only Payment Systems Regulator (PSR) with a statutory objective to ensure that payment systems are operated in a way that takes account of users’ needs.

The FCA is the UK’s competent authority for the Payment Services Regulations (PSRs) 2017. The PSRs aim to make payments safer and more secure and protect consumers. As set out in these regulations, if a payment transaction (be that a bank transfer or debit card payment) is not properly authorised by the customer, the customer’s bank or payment service provider must refund the amount of the transaction to the payer. For authorised payment scams, where the customer has authorised a bank transfer but the money has been paid to a fraudulent recipient, the PSR has brought together consumer representatives and banks to produce an industry code of conduct to address this issue. Launched in May 2019, the code sets out agreed principles for greater protection of consumers and the circumstances in which they will be reimbursed, marking a significant step in delivering improved protections for customers.

Regarding debit card charges, the UK implemented the EU’s Interchange Fee Regulation in 2015 which introduced a cap on one of the key fees applicable to card payments. The European Commission is in the process of reviewing the effectiveness of this regulation as part of its usual process. The PSR, who is the UK’s lead competent authority for the Interchange Fee Regulation, is also conducting a review into the supply of card-acquiring services. Amongst other things, this review will examine the fees merchants pay for these services.

The European Commission plans to review the effectiveness of the Interchange Fee Regulation in the coming years as part of its usual process. Government has therefore not made a formal assessment of the impact of the Interchange Fee Regulation.

The Government is open to hearing views on this issue, and digital payments more broadly, as evidenced by its recently closed call for evidence on cash and digital payments in the new economy. This sought information on how the shift from cash to digital payments impacts on different sectors, different regions and different demographics. The Government will formally respond to the call for evidence in due course.

The Home Office has overall responsibility for economic crime including credit and debit card fraud. The Ministry of Justice supports this work and has responsibility for the criminal court system and criminal law reform.

All Catering and Retail Services staff, with the exception of staff grade A and above, receive a share of gratuities and function service charges, including those paid on debit and credit cards. The formula for working out the share for each permanent member of staff is based on contracted hours and attendance. Gratuities are distributed three times a year through payroll after a 13.8% deduction for employer National Insurance, and individually-calculated deductions for employee National Insurance and income tax.

A proportion of gratuities and function service charges is paid to zero hour staff (none of whom has a contractual exclusivity clause) split on a pro-rata basis according to the number of hours they have worked. Since the review referred to in my predecessor’s answer of 26 March 2015 (HL5819), the House of Lords makes no deduction for card commission.

The European Commission is expected to publish its response to the Green Paper consultation Towards an Integrated European market for card, internet and mobile payments later this summer, together with a legislative proposal to regulate multilteral interchange fees on card payments. The proposals will be accompanied by an impact assessment.

The Government will make its own assessment of the legislative proposal once the proposal is published.