Credit card charges

THE financial services inquiry led by David Murray is calling for a ban on outrageous surcharges on credit and debit card transactions in the Murray Report into financial services industry.

Retailers may be limited to 12 cents or 0.5 per cent of the transaction value, whichever is less, News Corp reported on 4 December 2014.

Town Hall (Sydney) newsagent Hendri commented on the news report and said;

While I agree that customers should not be slugged by exorbitant fees on Credit Cards and EFTPOS payment, merchants and retailers should not always be portrayed as the bad guys in this kind of news.

We do have surcharges for Card transactions. In our case, transactions that are less than the minimum and those that involve transport ticketing.

The most common question (less informed) customers asked is “why there is a surcharge on this?” In my opinion, before this can be appropriately answered the customers should understand the following:

  • How much do the banks charge the merchants?
  • How much commission do State Transit pay the agents? If the commission is just barely enough to cover processing fee (labour, equipment, etc), How do customers expect newsagents to absorb the banking fees? (Anyway I do not believe that it even cover the processing fee, one of our staff member was very stressful on the early days when they started to roll out OPAL, and the commission received can hardly pay for additional staff).

What do other newsagents think and what do they charge?



5 thoughts on “Credit card charges

  1. We do not have a surcharge on card transactions. The reason for this is that we feel that, by using “fantastic plastic”, the customer tends to spend more than they would if they had cash. This increase spend compensates for the fees we pay to the banks. While this is not case for every customer I’m sure if it wasn’t for plastic our turnover would be much less. By not passing on fees it makes us look squeaky clean, reduces arguments and mitigates the amount of suspicion cast over this issue.


    • We actually waive the charge for this kind of customers (mostly our regulars). Also, we have done some observation. I do not know whether this only applies to the customers around our area or whether this applies to broader customers. Those who normally happy to pay “card fees” usually willing to purchase more items than those who are not willing to pay for the fees. Here, we are talking about those who just normally buy transport tickets and nothing else. For those customers that also purchase other items, we usually waive the fees. We are happy and customers are happy. What else to expect?


  2. There needs to be more sensible and fair regulation surrounding card fees, there needs to be an equal standing for what the majors are charged compared to small business. There also needs to be more education – most people are unaware that a tap n go transaction on a visa or MasterCard debit is actually charged at credit card rates even though it is an eft transactions adding further cost to small business.


  3. I was previous with Tyro & just by asking the question about their fees, they dropped 25%. They still could not get close to NAB or Suncorp. My recommendation if you with Tyro, ask the question… Interesting Tyro is the main PO$ recommend provider. 🙂

    NAB & Suncorp are PC-EFTPOS which I have no problems with. The NAB terminals also have WIFI backup, if your internet drops out which is very useful.



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