Business · Companies · 3 hrs ago
Most Australian small businesses absorb card surcharge ban costs for now
Australia's ban on credit and debit card surcharges took effect on October 1.
Many small businesses have so far absorbed the cost of accepting card payments instead of charging customers separately.
Tyro found only 12.4% of merchants raised prices in the first three weeks of October, in an analysis covering about 65,000 businesses.
The businesses included hospitality, retail and services, and those that did raise prices increased them by more than their previous surcharge.
Rising wages, rent, electricity and other costs are adding to the pressure on small businesses.
Interest rate rises also squeeze customers' spending and increase borrowing costs for businesses.
Tyro expects more price rises over the next six months, though the timing and scale are not specified.
Most Australian small businesses have so far absorbed the costs of the credit and debit card surcharge ban rather than passing them on to customers.
Tyro found that 12.4% of merchants raised prices in the first three weeks of October.
The ban took effect on October 1, and the underlying costs of accepting card payments remain.
Tyro expects more businesses to raise prices over the next six months as costs rise.
- Who
- Australian small businesses, with transaction data analysed by Eftpos provider Tyro.
- What
- Most businesses have absorbed costs after the card surcharge ban, but more price rises are expected.
- When
- The ban took effect on October 1; Tyro’s analysis covered the first three weeks of October.
- Where
- Australia.
- Why
- Businesses face the costs of accepting card payments as well as rising rent, wages, electricity, supplier costs and other pressures.
This story does not have two clearly opposing sides.
The credit and debit card surcharge ban took effect.
Tyro’s analysis found that 12.4% of merchants raised prices.
The Reserve Bank of Australia made its fifth official interest rate rise of the year.
Tyro expects more businesses to raise prices.
- Merchants raising prices
- 12.4% in the first three weeks of October
- Businesses covered by Tyro analysis
- About 65,000 merchants
- Sectors covered
- Hospitality, retail and services
- Surcharge ban
- Took effect on October 1
- Expected price-rise period
- Next six months
What people are saying
While card surcharges have disappeared, the underlying costs of accepting card payments haven’t.
They want to do the right thing by their customers and remain competitive, but that is becoming increasingly difficult as the costs of doing business continue to rise.