[adning id=”12070″]

[adning id=”12070″]

Measures to end merchant card transaction fees

The National Retail Association is calling on the Reserve Bank to end unnecessarily high merchant fees associated with card transactions which unfairly impact small business, following the release of the RBA’s Retail Payment statistics yesterday. 

National Retail Association Chief Executive Dominique Lamb said the Reserve Bank and policy makers have an opportunity to implement least cost routing measures to assist small retailers as they struggle with the rising cost of doing business.

“The Reserve Bank can fix this unfair system by applying least cost routing. This will reduce costs to small businesses in this economically uncertain time, and potentially dodge having to surcharge customers more,” Ms Lamb said.

Least cost routing allows retailers to choose to send transaction via the debit network that costs them the least to accept. With 70 per cent of retail transactions made with debit cards, it is paramount in helping small businesses to better manage their costs.

“When a customer makes a debit payment, small businesses should have the power to choose the most financially viable debit network option,” Ms Lamb said.
“This issue is hurting small business around the country every day and it is only getting worse. The inability to route transactions is currently costing Australian businesses $70 million each month.

SBW24

“Consumers paying with debit and credit cards has increased by 30.2 per cent in the past year, and the associated costs will only continue to increase as more people move to mobile payments which currently cannot be routed because of the Reserve Bank’s inaction. Mobile payments are growing quickly and are subject to up to seven times the wholesale fees of normal card payments.

“This issue is hurting small business around the country every day and it is only getting worse. The inability to route transactions is currently costing Australian businesses $70 million each month.

The National Retail Association is the voice of modern retail, representing more than 60,000 stores across Australia.  It has been serving businesses in the retail and fast food sectors for close to 100 years.

Source: ASBFEO

Facebook
Twitter
LinkedIn
Email
Print

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?