I mostly agree, but it would be way better if we provided an at cost-service.
This is infrastructure we’re allowing private companies to extract profit from.
Until we have such a at-cost service, I’m of the opinion we should pass on 100% of the card fee, as determined by the card issuer (not the terminal), incentivising people to ditch rewards and BNPL cards.
Square charging businesses a flat rate would have to be undone for this to work.
I mean the RBA cut the credit card cap here from 0.8% to 0.3%. EFTPOS is down to 0.16% I’m pretty sure this places us near the lowest card fees in the world now.
Last I checked, the cost of cash handling here was over 1% of a transaction.
My reading of it is that it does. How it is enforced I don’t know. I assume the business would need to report someone for over charging them in transaction fees given that we don’t see what the fee is.
I mostly agree, but it would be way better if we provided an at cost-service.
This is infrastructure we’re allowing private companies to extract profit from.
Until we have such a at-cost service, I’m of the opinion we should pass on 100% of the card fee, as determined by the card issuer (not the terminal), incentivising people to ditch rewards and BNPL cards.
Square charging businesses a flat rate would have to be undone for this to work.
I mean the RBA cut the credit card cap here from 0.8% to 0.3%. EFTPOS is down to 0.16% I’m pretty sure this places us near the lowest card fees in the world now.
Last I checked, the cost of cash handling here was over 1% of a transaction.
Does that apply to the payment provider (the services that provide the terminals, etc?)
Or are we just relying on the “free market”, which failed until this intervention, to re-price their services now that card fees are lower?
Genuinely curious as I couldn’t find the info
My reading of it is that it does. How it is enforced I don’t know. I assume the business would need to report someone for over charging them in transaction fees given that we don’t see what the fee is.