Interchange fees were originally brought in to provide banks with an incentive to roll out infrastructure. In the early days of electronic card transactions, all transaction charges flowed to the acquiring banks, but this situation has changed. But in general, the merchant service fee is made up of hiring terminal, admin costs, profit margin for the bank, and transaction fees. This is what comprises the cost of acceptance, so on average a merchant is looking at anywhere from 20-38c for a debit transaction.
Key Takeaways:
- Overcharging customers for using EFTPOS is soon going to be a thing of the past, but will the local corner store survive without passing the buck? C&I editor Ben Hagemann reports.
- Whether it’s by this or any other name, we all know the so-called ‘Chewing Gum tax’. EFTPOS surcharges and minimum spend rules are a pervasive part of the point of sale experience when shopping with small retailers, especially when it comes to the route channel.
- Consumers love to hate these seemingly tiny fees for using their own bank card when making simple purchases from a corner store.
“Whether it’s by this or any other name, we all know the so-called ‘Chewing Gum tax’. EFTPOS surcharges and minimum spend rules are a pervasive part of the point of sale experience when shopping with small retailers, especially when it comes to the route channel.”
http://c-store.com.au/2017/03/23/special-feature-retailers-need-know-eftpos-part-1/
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