Liberal senator Dave Sharma penned an op. ed. for The Australian Financial Review claiming the RBA position on card surcharges is a considered way forward toward a more modern and competitive system.
The opening line of his piece sets up up for his ignorant take.
Paying a fee in order to spend your own money is a strange state of affairs.
Does he not understand business, that businesses have costs and the costs are reflected in the costs of products. With the current approach to surcharging, retailers are advising consumers the cost of this part of their business. I would not, however, that some lazy retailers go for a high cost payments option in the knowledge that they can pass that on. I think this is poor form by these retailers when there are payments costs well under 1% readily available. But, I digress.
The currently published position by the RBA if implemented fails small business retailers.
Sharma goes on to write:
The abolition of card surcharges would bring card payments in line with cash and be of immediate benefit to consumers and households, saving them a collective $1.2 billion. Mandating the reduction of wholesale fees linked to card use will benefit merchants, and particularly small businesses.
It seems like Sharma has not read the RBA consultation paper.
My concern is that small business retailers like newsagents are ignoring what’s is being discussed here and that they will only arc-up when it is too late.
Right now is when we need to be approaching our local federal politicians so they understand the risk to small business retail of the flawed RBA position on surcharges. The RBA claim to eliminate the cost of surcharges on consumers is nonsense unless small business retailers are given payments costs that match the sweetheart deals given to big business.
Dave Sharma needs to do better research before writing next in the big business mouthpiece, the AFR.
Meanwhile New Zealand’s Commerce Commission has retained a zero debit interchange option, continued card surcharging and reduced other interchange fees for businesses accepting Visa and Mastercard payments. Hmm, what is it with politicians and their lack of apparent understanding of business.
It is very disappointing to realise that there are very few people involved in federal parliament that understand, how businesses work, how costs are passed on, and how smaller business need assistance in driving out the many costs of business.
When we talk about helping consumers, mums and dads, and the whole country deal with the real cost of living crisis. One of the easiest ways to help everyone, is to help all businesses, reduce their costs.
Enabling smaller business, with less buying power for finance (inc: card surcharges) , key monthly overheads, wages and everything else, is where there are huge savings for the community.
Applying pressures for business to accept more unreasonable costs from banks for card surcharges, is not helpful !
Small business, such as newsagents, bakeries, hairdressers, tradesman, mechanics, fashion and toy stores, and other service providers, not only provide convenience, friendly service, flexibility in options, and a great variety of different products and options.
Whom really wants to live in a world, were everything comes from Wesfarmers, Woolies, and Amazon !!
Surely asking these ministers, and federal members, to help drive the cost out of business, shouldn’t be to hard a request??