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Sick of paying Credit Card Surcharges?

August 16, 2017

Small retailers face many challenges, least of which is payment of excessive fees and charges for merchant facilities so we can take credit card payments.

 

Instead of judging these small merchants, perhaps the average consumer should consider why your local merchants have to charge a surcharge for using credit facilities in the first place.

 

Many consumers are unaware of merchant fees imposed upon businesses. Merchants charge fees because they have to pay the banks to use those facilities. There are usually % + set fees to cover use of the facility.

 

Curious? Have a look at some of the fees imposed upon merchants here: 

https://www.westpac.com.au/business-banking/merchant-services/manage/fees-and-charges/

http://iframe1.mtansw.com.au/files/downloads/cba/Merchant%20fee%20booklet.pdf

https://www.nab.com.au/content/dam/nabcampaigns/nab/staticweb/docs/a-guide-to-nabs-merchant-statements.pdf

http://www.anz.com/small-business/products-services/merchant-services/merchant-sevices-price-structure/

 

Merchants set limits for using credit facilities for a reason, among which, it would be impossible for a small merchant to determine the exact fees a transaction would incur at payment on a case-by-case basis; especially now the payments are being split into at least 10 different types of charges.

 

Years ago, the credit card industry also lobbied governments for banning credit card surcharges, instead requiring merchants to label prices with "cash discounts". Article siting some sources here: http://digitalcommons.law.ou.edu/cgi/viewcontent.cgi? article=1022&context=olr

 

Example: instead of paying $5 for a coffee at your local store, the price would be $5.50, if you pay cash, the price would be $5; hence the term "cash discount".

 

Effectively it's helping the credit card companies & banks hide fees from consumers. That extra $1 you pay in surcharges isn't going to the merchant, its going to the banks and credit card companies. #themoreyouknow

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