NSW small businesses contend with how to cover merchant fees after card surcharge ban
Small businesses in New South Wales are adjusting to a new ban on card payment surcharges that took effect on October 1. Owners are responding by either absorbing the costs or increasing prices on menu items to maintain profitability.
Why it matters
Highlights the economic impact of regulatory changes on small business operations and consumer pricing.
Mr Barbaro says that annually his company pays about $150,000 in merchant fees. ( ABC News: Simon Amery )
NSW small businesses are looking at how to cover the cost of merchant fees after the ban on card payment surcharges took effect on October 1.
Some owners have increased the price of items, while others have opted to absorb the cost.
The consumer watchdog says businesses have the option of offering "discounts to consumers, who pay using a particular payment method, such as cash or PayID."
Link copied Share Share article Small businesses across New South Wales are grappling with how they will cover the cost of merchant fees.
The Reserve Bank of Australia's (RBA) last week introduced a ban on business owners adding extra fees for credit or debit card payments on EFTPOS, Mastercard, Visa and American Express.
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