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Aussie customers have been warned fee-free payments are a double-edged sword.
came into effect, saying they cannot simply absorb the cost of processing electronic payments. The new rules prevent businesses from passing card payment surcharges directly on to customers, but the underlying transaction fees charged to businesses remain.
Know the news with the 7NEWS app:Private chef David Lee said his business had no choice but to increase its prices to absorb the cost involved in processing large transactions. Lee said he had already noticed prices increasing at the supplier end as businesses adjusted to the new rules.
His business is overwhelmingly reliant on electronic payments, with high turnover, meaning offering customers a cash alternative is not practical.incentivising customers to pay with cashThe studio has a broad mix of customers, with Cochran saying some older clients were already reluctant to keep card details on file or pay deposits electronically.
“We can’t absorb the fees with the card surcharges. So, we need to then put our prices up overall,” she told Sunrise. The business has opted for a 2 per cent increase, despite some payment processing fees being higher. The business is also offering a 2 per cent discount to its long-standing customers who pay with cash.
Media and PR expert Liz Nable said she believed the changes had been mischaracterised as a ban on banks charging transaction fees.
“They will continue to charge these surcharges. They are now capped at what they can charge. But small business owners from today are banned. It is illegal to pass those charges on.
”Credit: Sunrise“Struggling businesses are going to have to absorb that cost, and we know that they can’t afford that, many of them right now,” she said.
“So, essentially, they’re going to now increase their prices as a way to pass that cost on because they just can’t survive. ”“I can’t see a policy that they’ve put in place in the last two to three years that has assisted small businesses, for five years almost,” he said. Cochran said businesses needed to be consulted more closely before policies affecting them were introduced.
“I don’t know if ChatGPT was used to do the numbers on this saving, but it’s not realistic. She said policies should be reconsidered if they were not achieving their intended outcome.
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