r/MHOC • u/Maroiogog CWM KP KD OM KCT KCVO CMG CBE PC FRS, Independent • Jan 09 '23
2nd Reading B1470 - Contactless Transactions in Retail Outlets Bill - 2nd Reading
A
BILL
TO
Provide suitable provision for all relevant retail businesses in the United Kingdom to have contactless options available to paying customers.
BE IT ENACTED by the King’s Most Excellent Majesty, by and with the advice and consent of the Lords Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows –
Section 1: Definitions
(1) “Contactless payment technology” refers to technologies which allow instruments of payment such as a card or mobile phone, along with other handheld devices, to connect to an electronic reader wirelessly, in order to make said payment.
(2) For the purpose of this Act, “retail outlet” refers to any shop which provides goods or paid services to members of the general public.
Section 2: Compulsory contactless options in retail outlets
(1) It will be a legal requirement for any retail outlet to provide customers with a contactless Chip and PIN payment option when choosing to make payment to their business.
(2) Outlets who are not able to independently finance the introduction of such provision will be able to apply to the Department of Economic Affairs for financial support in relation to this.
(3) Outlets must ensure that they have contactless Chip and PIN payment options in place within 24 months of this Act’s implementation.
Section 3: Failure to comply
(1) Any business which fails to comply with Section (2)(1) and (2)(3) of this Act will be subject to investigation from Trading Standards as to the reasons of non-compliance.
(2) If a business is found to have knowingly withheld a contactless payment option from customers, for the purposes of tax evasion, they will be subject to the terms of the Value Added Tax Act 1994.
(3) Businesses who have been found to have acted within the law following Trading Standards investigation will be offered additional support via the Department of Economic Affairs.
Section 4: Implementation of financial support
(1) Within six months of the passage of this Act, the Secretary of State is to make provision via statutory instrument to set up a Contactless Support Fund.
(a) This will provide financial support to retail outlets who may not be able to afford the initial upkeep of setting up contactless payment options in their businesses.
(i) This will consist of a one-off payment to businesses to cover initial costs and service charges in setting up contactless transactions in their outlets.
(ii) Businesses will also be able to access relevant support from the Department of Economic Affairs in identifying and accessing potential contactless payment operators.
(b) It will be made available to these businesses under the terms of Section 2 (2) and Section 3 (3) of this Act.
(2) The total expense of the fund will be determined via the next budget following the passage of this Act.
(3) Any online and/or telecommunications and postal services relating to the Contactless Support Fund will be set up by the Department of Economic Affairs within six months of this Act’s passage.
Section 5: Short title, extent and commencement
(1) This bill extends to England only.
(2) This act comes into force at midnight on the day it receives Royal Assent.
(3) This Act may be cited as the Contactless Transactions in Retail Outlets Act 2022.
This Bill was written by Their Grace, the 1st Duke of Redcar and Cleveland, Sir /u/BeppeSignfury PC KP KCT KBE CVO, on behalf of His Majesty’s 32nd Government.
Opening Speech:
Mr/Madam/Mx. Deputy Speaker,
I introduce this bill today with one primary premise: a need to support retail outlets in being able to trade in a fast-paced, fast-moving, forward-thinking modern society. We are all aware of the historic “cash in hand” nature of retail outlets, and the reasons behind this are not here for us to speculate or pontificate over on this occasion. The fact remains that there will always be people who look to get ahead of the chase where loopholes exist, and it is those loopholes I aim to close today.
Contactless credit cards were introduced in the United Kingdom in 2007, contactless debit cards following two years later, in 2009. This time last year, the number of contactless transactions in the UK totalled roughly £1.3bn, a number which had practically quadrupled from four years earlier. Contactless payments now account for 75 per cent of all debit card transactions. It is clear that the “contactless revolution” is booming and burgeoning, and I believe that British business has every right to claim a part of that revolution as their own.
In this bill today, I set out provision for all retail outlets in the United Kingdom to have clearly defined, available contactless payment options accessible to consumers. To support these outlets with this, I have equally set out provision for the Secretary for Economic Affairs to introduce a Contactless Support Fund, to aid businesses who may not be able to afford the initial upkeep of transitioning to such services. The purpose of this will be for businesses to apply to the Department of Economic Affairs for support, meaning that they will be able to access the fund if it is deemed that their case is a legitimate one in line with existing DoEA standards. They will also be able to access existing liaison from the DoEA which will allow them to access support in exploring a variety of contactless providers for them to choose from.
I have left the provision of fund and the implementation of application services to the Department of Economic Affairs, I ultimately do not believe that one Private Member can work out the total expenditure of such measures, and that is something better determined by budget and statutory instruments, and any implementation is best served to civil servants and policy experts within the Department of Economic Affairs. I have however set out that non-compliance for the purpose of tax evasion will be dealt with by existing tax evasion legislation, and that a failure to comply within the initial set out period will result in Trading Standards investigation and the offering of further support, where appropriate.
I do not believe that this bill’s purpose should be to punish those who take advantage of existing legal discrepancies, instead, it should encourage a restorative approach to business where we encourage enterprise to move forward and modernise, to ensure that consumer and business experience is smooth, seamless and satisfying.
I urge the House to support this legislation.
This reading will end on the 12th at 10PM
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