Yes and no; you won’t be paying an additional line item - but the stores are still going to be incurring merchant fees and will be passing that cost onto consumers one way or another.
This will just incentivise some businesses to just increase their prices 1-2% regardless of payment method.
Everything costs money when you run a business. You need to consider all of those things when setting a price. Cash has more overhead, so a surcharge for another payment method makes no sense.
True, everything costs money when you run a business.
But for small businesses (usually the kind that charge a surcharge), I question the statement that cash has a higher overhead than EFT/credit cards. Maybe I’m thinking small, and just expect a cafe owner (for example) to just deposit cash at an ATM on their way home - rather than pay for an Armaguard lock-up etc.
Even medium businesses that deal with large items.
An industrial reseller may purchase an engine, lathe or other component from a wholesaler/importer and then onsell to an industry.
2% of a $50k sale is still $1000.
Agreements are made on tenders where the differences are fractions of a percent and an extra months credit.
That will either eat into margins or if the bloke down the road offers it at $49k, cost the sale!
In which case, maybe there are too many resellers.
There is no such thing as goodwill any more.
I normally estimate the break-even point at half an hour of the manager’s wage since that’s how long it takes to count down 2 registers and go to the bank.
extra insurances costs to cover cash being stored, staff theft, robbery with staff being held at knife point, need to arrange change so a bank visit is necessary for that etc etc
Yes and no; you won’t be paying an additional line item - but the stores are still going to be incurring merchant fees and will be passing that cost onto consumers one way or another.
This will just incentivise some businesses to just increase their prices 1-2% regardless of payment method.
Everything costs money when you run a business. You need to consider all of those things when setting a price. Cash has more overhead, so a surcharge for another payment method makes no sense.
True, everything costs money when you run a business.
But for small businesses (usually the kind that charge a surcharge), I question the statement that cash has a higher overhead than EFT/credit cards. Maybe I’m thinking small, and just expect a cafe owner (for example) to just deposit cash at an ATM on their way home - rather than pay for an Armaguard lock-up etc.
Even medium businesses that deal with large items.
An industrial reseller may purchase an engine, lathe or other component from a wholesaler/importer and then onsell to an industry. 2% of a $50k sale is still $1000.
Agreements are made on tenders where the differences are fractions of a percent and an extra months credit.
That will either eat into margins or if the bloke down the road offers it at $49k, cost the sale!
In which case, maybe there are too many resellers. There is no such thing as goodwill any more.
I normally estimate the break-even point at half an hour of the manager’s wage since that’s how long it takes to count down 2 registers and go to the bank.
extra insurances costs to cover cash being stored, staff theft, robbery with staff being held at knife point, need to arrange change so a bank visit is necessary for that etc etc
Those merchant fees will also be reduced. Or more accurately the cap on what the banks can charge them has been lowered.