Brought something from the stihl chainsaw shop on Friday and was charged 2% for using visa. Anyone think we can expect to see this surcharge drop with new the new rules?
Credit card surcharge
Robbert on 06/11/2022 - 14:51
Comments
I dont think you can charge a surcharge for cash.
You could be right, which is kind of odd really.
At the shops the past few days and dunno what it is with people and cash lately but there has been a few that have brought out the coins and the checkout queue starts building up coz the checkout operator is busy counting all the coins!
Yeah, I've stopped paying quite a number of bills by credit card due to the surcharges. But not many retailers charge them in store yet.
The one that does that I come across most often is PBTech but we tend to order and pay online for collection in a day or two.
Only rarely, if someone needs something urgently, do we pay by credit card, and then we just pass that on to the client anyway, and they would neither know nor care if they really need the item the same day.
PBtech have online eftpos which works well if your bank supports it.
Is that where you have to give a third party your bank credentials?
If so, I have agreed with my bank that I won't do that.
@Alan6984: No, I think you are referring to Poli…..to which I have the same agreement as you.
But online eftpos is something else, specifically arranged with some banks and retailers.
Eg:
https://www.westpac.co.nz/personal/ways-to-bank/smart-ways-t…Or
https://www.asb.co.nz/banking-with-asb/online-eftpos-and-asb…
online eftpos
You enter your phone number, and it sends a notification to the app for your bank on your phone.
@Kiwi: Okay - Haven't used that myself.
Looks like it is 'instant' (like EFTPOS), as opposed to DC which usually takes about two working hours if between different banks (instant if the same bank)?
@Alan6984: Yes, it is instant. I use it at PB Tech regularly. With the free shipping codes I haven't had to go in store for some time
@NeM2k2: Cool - I'll have to look into that next time a client needs something urgently.
Thanks,
Alan.
Yes, I used that for the first time today and was impressed, I also thought it was dodgy like Poli until reading up on it.
We bought lots of stuff from stihl botany with Amex. Never paid a surcharge, maybe it depends on the shop owner?
Likely. I have recently found out some new worlds and pak n saves dont accept amex even though most do.
Yes, Ormiston new world doesn't take Amex. So I just don't go there
yea it's dumb especially when retailers charge CC fees yet tolerate the charges from offering up BNPL schemes (Afterpay, Layby, etc)
Oh yes i forgot about BNPL which likely cost the merchant more than a credit card.
I’ve been buying pc parts lately and most retailers are charging a higher surcharge than credit card if paying by BNPL
When I find sellers on TradeMe that are offering afterpay I ask them to reduce the price of the item by 4% and I wont pay with afterpay (The charge is 4.95%) So far most have agreed and done it. For some it's too much messing around, which I can understand.
Other retailers have I guess negotiated their own rates, but as the TradeMe rate is known it's easy to ask.
I cannot see retailers dropping prices, (which currently may have a CC surcharge built in already on ALL purchases so it 'looks' like theres no 'surcharge), if or when the banks have to reduce their charges. Somehow I think the customer wont see any reductions.
Wasn't there the new surcharges reduction act of some sort gonna happen from Nov'22? from 2.5% ish to 0.8% ish? Seems it's not live yet - am I getting it right? https://www.parliament.nz/en/pb/bills-and-laws/bills-propose…
Someone should start a thread discussing it…. :-)
There was. That is why I started this thread to see if anyone notices a drop in surcharges i.e the saving get passed onto the customer.
Retail Payment System Act 2022 seems to be effective as of yesterday 13th Nov.
Looking at TradeMe ping's transactions fee, its still 1.95% charged to the sellers. Thought it capped at 0.8%?
Ping is grey area, because it's a "Ping surcharge", not a "credit card surcharge". Ping is like a payment gateway created by TM. They seem to have foreseen this…haha
If retailers still get charged a higher rate, then they are going to have to put up prices for everyone. IMO they would be better to target the banks, so that retailers can charge no more than they are being charged themselves.
I dont think they will.. more ways to earn via unaware customer
like the government not indexing tax brackets to inflation. been taxing everyone more and more for a decade
I see Wellington City Council is also still charging 1.85% ‘convenience fee’.
Has this bill come into effect and should this in theory be reduced to 0.8%?
It is hard to see how retailers won't have to reduce those fees they do pass on to the same level as the new limits (0.8%?)
However, given the current inflationary environment, many retailers will be raising prices regardless, so I would suspect many will just lift their prices by another couple of percent (on top of that they would have anyway), and maybe not bother with any surcharge.
Reality is that every retailer is economically irrational not to charge the most they can anyway, and if many / most of their customers were already paying a 2% (say) surcharge, then their customers were already willing to pay 102% of sticker price. I'm kind of surprised many more didn't charge a 'cash' surcharge as cash is expensive and risky to handle (one of the benefits of online sales - no cash!)
Will be interesting to see what actually happens :-)