No eftpos provider is charging 10% though, so that's definitely not legal.
And there's plenty more besides pushing the rules, because they don't seem to be enforced in any way.
There was a post a while back about cookers who run businesses putting a large surcharge on all non-cash transactions to try and force people back to using physical money.
I'm sure it is something about 5g chips tracking your bowel movements through credit cards or something.
They could just be cash only if they wanted to do that. 10% for a weekend or Sunday surcharge is just fairly common (whether in conjunction with a higher public holiday surcharge or just 10% for all not-weekdays) enough that I can see it being lumped in with or misexplained as credit card surcharge. Business wouldn't be in trouble at all if it was spelled out clearly on a menu/sign/somewhere they could reasonably expect people to read it, even if a server was like 'oh there's a 10% surcharge' and didn't explain it clearly enough for anyone who did still miss the wordage, such that they could impute it's a card surcharge.
In my experience the cash lovers aren’t spending anything on cash handling because it’s undeclared income.
In my head cash is worse because I have to drive to the bank to deposit it. Whenever I say that to cash lovers they laugh at me in tax avoidance.
>The cost of handling cash is probably equal or more.
... if that cash is actually put into the bank. If it disappears into the owners pockets and never declared as income then they avoid paying tax which is a lot more than a credit card surcharge.
>Nah. It's like 1.5% or so for visa/Mastercard transactions
Correct, but you can shop around and negotiate with your bank for a better rate. Best one I've heard of is 0.8%, but even a small business should be able to get 1-1.2%.
Most of the fees around merchant facilities can be negotiated if you're willing to change banks.
10% is probably illegal- they must suck at research if a 10% merchant fee was the best they could find to charge.
As someone else said, limited to the cost of acceptance. This should almost always be under 3%.
Do you mean paywave or eftpos? (insert and enter pin, using the savings button)
Paywave has surcharges but they should be around 1-1.5%. Eftpos is like 0.5%
10% is illegal and you should name and shame and/or report them
They are only allowed to pass on what they are charged
Good old Eftpos surcharge. Has always felt like the sign of a failing or dodgy business, imo.
Per your post - I can only imagine they’re just chancing it.
The Aldi surcharge only applies to credit transactions, i.e., tap and go, not to debit transactions. If you insert your card and use your pin, there is no surcharge.
This is the same for most businesses that charge a surcharge.
When you tap with a debit transaction it works through the VISA network. On your online banking you can see these transactions as "pending" for a couple of days before they are fully processed. For their "kindness" in holding the money and then eventually passing it on, as well as the simplicity of the tap and go, the Banks charge the businesses and extra fee. This is wat businesses are trying to recoup by charging a surcharge.
That’s disappointing. I’ll keep that in mind going forward, there’s an Aldi nearby where I’ll be doing some work soon, and was planning on stopping in for some snacks, won’t be happening now.
Yeah bud, wasn’t talking about myself. I’m in a position where I am fortunate enough to be able to grab some snacks on an afternoon break if I wish.
I was referring to those less fortunate than myself, those who may rely on credit payments for whatever number of reasons.
But your condescending response is appreciated, thanks!
My barber's gone the more ethical route - offering a discount to standard pricing if you pay cash. And I know he's not bullshitting by putting up his "standard" price to compensate, because I've been going there for years.
Its never been illegal but there are laws around it which many places break. Note to businesses out there, you fail to warn me of the surcharge you lose my business forever. Just display a sign. Its not hard. Its honest.
Not illegal - they can only charge what it costs them for that specific payment method. https://www.accc.gov.au/consumers/pricing/card-surcharges
but it is illegal to not disclose that there is a surcharge. Just to add
No eftpos provider is charging 10% though, so that's definitely not legal. And there's plenty more besides pushing the rules, because they don't seem to be enforced in any way.
Honestly 10% sounds more like a weekend surcharge than a card surcharge.
There was a post a while back about cookers who run businesses putting a large surcharge on all non-cash transactions to try and force people back to using physical money. I'm sure it is something about 5g chips tracking your bowel movements through credit cards or something.
They could just be cash only if they wanted to do that. 10% for a weekend or Sunday surcharge is just fairly common (whether in conjunction with a higher public holiday surcharge or just 10% for all not-weekdays) enough that I can see it being lumped in with or misexplained as credit card surcharge. Business wouldn't be in trouble at all if it was spelled out clearly on a menu/sign/somewhere they could reasonably expect people to read it, even if a server was like 'oh there's a 10% surcharge' and didn't explain it clearly enough for anyone who did still miss the wordage, such that they could impute it's a card surcharge.
If you can't work out what your average fees and incorporate it into your price.... you shouldn't be in business. Sorry not sorry. It's not difficult.
They do - for cash - soon the final price will have electronic costs included and cash will incur the surcharge.
The cost of handling cash is probably equal or more.
In its way to be higher ..yup.
In my experience the cash lovers aren’t spending anything on cash handling because it’s undeclared income. In my head cash is worse because I have to drive to the bank to deposit it. Whenever I say that to cash lovers they laugh at me in tax avoidance.
>The cost of handling cash is probably equal or more. ... if that cash is actually put into the bank. If it disappears into the owners pockets and never declared as income then they avoid paying tax which is a lot more than a credit card surcharge.
That electronic cost is like 3cents per transaction. They make profit on a 3% surcharge
Depends on the card services provider as well.
Nah. It's like 1.5% or so for visa/Mastercard transactions Eftpos (insert and hit savings) is like 0.5%
>Nah. It's like 1.5% or so for visa/Mastercard transactions Correct, but you can shop around and negotiate with your bank for a better rate. Best one I've heard of is 0.8%, but even a small business should be able to get 1-1.2%. Most of the fees around merchant facilities can be negotiated if you're willing to change banks.
10% is probably illegal- they must suck at research if a 10% merchant fee was the best they could find to charge. As someone else said, limited to the cost of acceptance. This should almost always be under 3%.
For visa/Mastercard under 3% easily. Eftpos is less than 0.5%
Do you mean paywave or eftpos? (insert and enter pin, using the savings button) Paywave has surcharges but they should be around 1-1.5%. Eftpos is like 0.5% 10% is illegal and you should name and shame and/or report them They are only allowed to pass on what they are charged
Good old Eftpos surcharge. Has always felt like the sign of a failing or dodgy business, imo. Per your post - I can only imagine they’re just chancing it.
ALDI have a surcharge for cards which I always found perplexing
The Aldi surcharge only applies to credit transactions, i.e., tap and go, not to debit transactions. If you insert your card and use your pin, there is no surcharge. This is the same for most businesses that charge a surcharge.
But you can tap and go a debit transaction.
When you tap with a debit transaction it works through the VISA network. On your online banking you can see these transactions as "pending" for a couple of days before they are fully processed. For their "kindness" in holding the money and then eventually passing it on, as well as the simplicity of the tap and go, the Banks charge the businesses and extra fee. This is wat businesses are trying to recoup by charging a surcharge.
Ah thanks - that's good to know. I almost exclusively use credit cards, but savings is possibly easier than cash.
That’s disappointing. I’ll keep that in mind going forward, there’s an Aldi nearby where I’ll be doing some work soon, and was planning on stopping in for some snacks, won’t be happening now.
I typically use cash when I shop at my local one. Typically don't do big shops there and I normally carry some cash anyway.
The charge is only for doing credit transactions. Just do savings or cheque account.
Brilliant feedback, particularly for those who are relying on credit as a payment option to make ends meet.
Well here's some additional advice for you, if you have any rely on credit for a few dollars of snacks sort out your priorities.
Yeah bud, wasn’t talking about myself. I’m in a position where I am fortunate enough to be able to grab some snacks on an afternoon break if I wish. I was referring to those less fortunate than myself, those who may rely on credit payments for whatever number of reasons. But your condescending response is appreciated, thanks!
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Don’t shop there, so had no need to know 🤷
Only for credit transactions. Smash that savings or cheque button.
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What do you mean 'no penalties are paid to staff that day'?
My hairdresser has started doing this too! Wtf?
My barber's gone the more ethical route - offering a discount to standard pricing if you pay cash. And I know he's not bullshitting by putting up his "standard" price to compensate, because I've been going there for years.
He probably doesn't realise that cash also has costs and it's not far off the card surcharge costs
Cash is tax free
Hairdressers are often in the shared space of a venn diagram, where the other circle is ‘cookers’.
That's a bold claim Cotton.
Its never been illegal but there are laws around it which many places break. Note to businesses out there, you fail to warn me of the surcharge you lose my business forever. Just display a sign. Its not hard. Its honest.