Change afoot for credit card interchange: what the new rates mean for small business – DynamicBusiness

A major change of how the Australia continent will be able to use credit cards is in effect, because they are being introduced to new regulations. This will have a large effect on small businesses, because they will no longer be able to make as much from reward programs anymore. This will also raise competition among credit card companies to be fast and efficient. The group that will notice the largest change in this new set of regulations, is the buyer to buyer markets.

Key Takeaways:

• The Reserve Bank of Australia has reduced credit card surcharge rates on commercial cards that may affect how small businesses operate financially.
• Small businesses may have to find ways to lower overhead costs, including altering their rewards, rebates, and points systems.
• Increasing commercial card use will open the financing field to new fintech startup companies to streamline payment technology in a more business-friendly way.

“Business-to-business (B2B) payments are becoming one of the fastest growing revenue streams for the likes of American Express, Visa and MasterCard.”

Read more: http://www.dynamicbusiness.com.au/small-business-resources/finance-cash-flow/change-afoot-for-credit-card-interchange-what-the-new-rates-mean-for-small-business.html