Cheapest EFTPOS for small business
New contactless payment systems are driving more transactions through the credit card network, say retailers.
Shoppers are used to getting mad at big corporations that charge eye-watering credit card fees.
Airlines, ticket sellers, taxi companies and parking buildings have few qualms about slapping buyers with a $2, $5 $10 or even $20 fee on top of their original purchase.
But little businesses are struggling with credit card fees they do not feel they can pass on to shoppers, fuelled by the rise of tap and go payments, say retail and business advocates.
"It's interesting because all the big companies pass on credit card charges on so it's surprising that small companies can sustain not passing it on, " says software company Xero's managing director Victoria Crone.
"It's a far more intimate (customer) relationship than a big company so they are far more cautious."
The issue is heating up because shoppers have embraced handy tap and go payment cards, which pay for purchases under $80 with a single tap and now account for millions of payments a month.
Business advocates say the system is pushing money into the credit card network at the expense of cheaper eftpos processing, which will end up costing shoppers money when small outfits can no longer absorb the cost.
The Commerce Commission raised fears of a payment monopoly driving up prices for consumers in its 2014 Consumer Issues report, released to Stuff under the Official Information Act.
"PayWave and PayPass have been touted as the latest and greatest advancement in retail technology ... (but) already we are seeing signs that NFC transaction systems are replacing the current eftpos payment system with its lower fee structure. This could result in a transaction fee structure monopoly and increased charges to consumers as traders pass on their increased transaction costs through surcharges or increased prices, " it said.
Crone says more small businesses are fighting back by leaving the tap and go function switched off on their payment terminals to avoid forking out the extra fees.
