Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Credit card surcharges

Mark Fletcher
April 29th, 2019 · 7 Comments

Check out this story about credit card surcharges in the New York Post. But be sure to read the whole article as it is fascinating and will, I am sure resonate with plenty here.

5 likes

Category: Newsagency management

7 responses so far ↓

  • 1 Graeme Day // Apr 29, 2019 at 7:25 PM

    Good article shows the twist between savings and normal costs however it illustrates just how many are using credit and for small everyday purchases . It’s not a good argument for a cashless society.

    1 likes

  • 2 Colin // Apr 29, 2019 at 9:39 PM

    I am sure that most retailers would happily absorb the true incremental cost of plastic payments. Where the system goes wrong is card issuers giving out benefits the retailer is paying for.

    The regulators should stipulate a minimum service level at which card cost are borne by the retailer. And that this base level is charged to all retailers at the same rate. Above this service level either the card holder pays or the retailer adds a charge deemed appropriate for the card scheme.

    Politicians will never agree to do this. Retailers will continue to get stuffed.

    1 likes

  • 3 Jason // Apr 30, 2019 at 4:26 PM

    Seems fair.

    Businesses want to charge to accept cards and pretend that cash doesn’t have a cost attached to it which is already built into the price, then they will have less customers. Simple?

    0 likes

  • 4 Graeme Day // Apr 30, 2019 at 5:36 PM

    The freedom of allowing the customer to shop where there are no fees and the same for the shopkeeper to charge what they like is the free market economy.
    Choice pushes competition regulation styfles it.
    Just a thought.

    1 likes

  • 5 David // May 1, 2019 at 9:39 AM

    It’s even worse with agency business where the credit card fee is payable on the gross amount collected but if calculated against the net commission received it could be anywhere from 5% to 50% of your income on that transaction (e.g. 1% of a $100 transaction for credit card fee, but if your commission is 10%, then the credit card fee is really 10% of your revenue).

    1 likes

  • 6 Mark Fletcher // May 2, 2019 at 5:27 AM

    David this is another reason to focus less on agency and more on retail with 50%+ GP.

    0 likes

  • 7 HENRY HENDERSON // May 3, 2019 at 12:25 PM

    The fairest way is the simplest: the banks charge the card holder.

    3 likes

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