Here is the text of a follow up letter I have sent to my local member of parliament on the EFTPOS issue. I am sharing it here to give newsagents an idea of how they might respond to the letters from some parliamentarians which look like they have been written by the same person.
EFTPOS FEES AND EPAL
Thank you for responding to my correspondence.
Bruce Mansfield, CEO of Eftpos Payments Australia Limited (EPAL) has done a wonderful job fighting off queries from politicians seeking answers on behalf of their constituents.
While EPAL has nothing new to say, it has done so inn such a way as to spin that the new fee regime is an opportunity for retailers.
It is more spin designed to deflect attention from the role being played by his board which is controlled by the major banks, Coles and Woolworths.
The facts which Mansfield ignores are:
- The 12 million Visa and MasterCard debit cards are dual cards i.e. also EFTPOS cards. They can be used in both networks depending on the cardholder pushing credit or check/savings.
- The EFTPOS network has become more expensive i.e. 1.2B Transaction by 11 cents, 800M by 6 cents. I am flabbergasted by the claim of “net impact zero”.
- The retailers can negotiate with acquirers challenging the acquiring margin, but how are they negotiating with issuers challenging the interchange fee? That is the one that was raised.
- The acquirer and retailers have to carry the bulk of the investment to save EFTPOS from the Bankcard demise. Why do they get charged?
Bruce Mansfield serves the issuing banks and major retailers sitting on his board to levy an ”EFTPOS tax”. It is a fee that banks now get to continue to issue EFTPOS functionality on their debit card.
Unjustifiable and untimely. His best position, if he had the survival of EFTPOS at heart and if he could decide, would be to maintain the cost advantage of EFTPOS versus scheme debit cards.
I hope that you and your colleagues support small business and help us to gain attention for this issue at the highest possible level.
If nothing is done, small and independent retailers will soon face higher EFTPOS fees than Coles and Woolworths. This would be unfair. It would also make a mockery of competition and small business policy.
EPAL should not be controlled by the banks or major retailers. It is like putting an alcoholic in charge of the bar. Of course the banks and retailers in control of EPAL will make decisions which suite them.
Retailers like family run newsagencies need your help, your voice challenging this new EFTPOS Tax. We need you to fight for us.
Don’t let go of this issue newsagents. Keep engaging with your local politicians. Otherwise you could be complaining about higher EFTPOS in the future knowing that you did not act today.
Gutted that there are no comments
Mark, everybody must contact their local member. After all this, I’ve been able to make an appointment with the Leader of the National Party and have organised a meeting in a few days.
We need to win this people or we’re ALL screwed
.
If I can do it, you can too……….
Will keep you posted.
Warrick Hosking
newsXpress gympie
Brett, Warrick – I fear that too many newsagents do not get that they are about to be violated by their banks.
This morning on the ABC there was a discussion about the new mobile phone wave technology for payments, is it correct the banks will be out of the loop entirely for these. Will be interesting to see how fast this all moves. I still have customers with no computer who write cheques. Some of them are only in their 50’s.
@h, is this anything like Edy?
Aaron here’s the link for you to listen
http://www.abc.net.au/rn/breakfast/stories/2011/3234401.htm
I don’t know who will sell the hardware either…
Mark – I don’t think it is necessarily a matter of newsagents not getting that they are about to be violated by their banks – I get it loud and clear but some of us get a little tired of constantly writing/emailing/phoning local members and getting nothing back except (on occasion) the standard letter bashing the other political party/castigating the banks/etc/etc/blah/blah/blah. In fact, on most occasions when I have contacted my local member’s office when something gets up my nose the response is zero.
I might add, when you have a member whose main political role seems to be as Shadow Minister For Getting Her Photo In The Paper & Being Offensive As I Can Whilst Hiding Behind The Parliament it really brings home that old saying about politics – The beauty of a democracy is that the voters get what they deserve!
Well done to Warwick for managing to collar a politician who just might have an interest in the electorate, something the people in my electorate have not had for many years.
I am acutley aware of the effect this apparently government-sanctioned, about to be perpetrated atrocity will have on small business but flogging dead horses is just not my style!