EFTPOS double dip will cost small business
04-April-2011
Federal Member for Parkes, Mark Coulton has called on the banks to reduce their small business banking costs and fees to offset new EFTPOS transaction fees that will be placed on small businesses from 1st October 2011.
The Reserve Bank approved new merchant transaction fees to EFTPOS as big banks and big retailers move there jointly operated EFTPOS system into a separate business.
“This move has dealt small businesses and family enterprises a huge blow. Not only will this increased fee hurt small business, consumers will inevitably pay more as these businesses will not be able to absorb the costs.”
“I have been contacted by small businesses in my electorate who are concerned about this increased fee. Newsagents in particular are a line of business that will be hit hard as they struggle to pass the fee increase onto consumers as newspapers and magazines have set prices. They will be forced to make consumers pay more for a can of coca-cola or a chocolate bar.”
EFTPOS Payments Australia Limited (EPAL) shareholders are made up of the banks and large retailers including Coles and Woolworths and these retailers will have the option to be excluded from these new changes.
“This is grossly unfair for small businesses. Smaller grocery retailers are already struggling to compete with Coles and Woolworths in the milk price war. How can they continue to exist when they are even further disadvantaged?”
The Opposition has written to the Reserve Bank and banking regulator to seek assurances that transaction charge off-set conditions are a part of the EFTPOS licence approval and that small business banking fees will come down as a result of this popular payment channel being established as a separate business with its own merchant fee revenue.
“This move was sanctioned by the Gillard Government and quite frankly I have come to expect nothing less as this is a government that has again proved its total disregard for small business.”
“Small businesses are the back bone of our economy. The banks must now reduce their business fees to offset the changes and ensure this double dip does not advance.”