More hospitality businesses are slapping customers who pay by card or via smartphone with a surcharge, as they seek to offset some of their rapidly rising input costs due to high inflation.
More hospitality businesses are slapping customers who pay by card or via smartphone with a surcharge in a bid to offset some of their rapidly rising input costs due to high inflation.
The figures from Tyro’s more than 66,000 business customers show that over the same period the portion of fast food businesses surcharging increased to 26 per cent from 16 per cent. Some businesses charge a flat fee rather than a percentage surcharge. It is usually more expensive for the merchant to accept payment with premium awards credit cards and international cards.The ACCC says the ban on excessive payment surcharges does not apply to BPAY, PayPal, Diners Club, American Express cards issued directly by American Express, or taxi fares.
Whatever the surcharge amount, the business must be able to prove the costs they have used to calculate it.Ben Zyl, chief executive and co-founder of Waave, a start-up payments provider, says it’s “commonplace” to see card payment surcharges of 1.5 per cent, but some can be as high as 3 per cent.Zyl says that paying surcharges on daily purchases can quickly add up to a lot of wasted money on surcharges.
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