A growing number of Australian merchants are passing on credit card surcharges to customers, with more than nine in ten large businesses expected to be doing so in the near term.
Banks typically charge merchants a fee when they accept payments via Visa, American Express, MasterCard and other credit cards.
A vast majority of merchants absorbed the cost in 2010, but a growing number have since begun passing the fee on to customers, with more than four in ten admitting to doing so in a December 2013 East & Partners survey.
From the report, released today:
East reported that large businesses turning over $725 million or more were more likely to apply a surcharge than smaller businesses, with 65% now doing so and another 26.8% indicating plans to do so.
Only 32.8% of “micro-businesses”, turning over $1 million to $5 million a year, currently applied a surcharge, East found, although an additional 29% planned to do so.
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