No more fee free eftpos

[Jim Goose]

Australian shoppers are being warned they may be charged a new fee from tomorrow when using debit cards at eftpos machines.

Retailers will be now be charged a fee every time something worth $15 or more is put through on a debit card.

The company which runs eftpos, ePAL, says it needs to increase its charges so that banks can afford to invest in new debit card technology.

One business which provides eftpos services says the major banks could earn $150 million a year.

When eftpos technology was first introduced, it was the cardholder's bank which paid the 5 cent fee for the transaction with the retailer's bank.

That was designed to minimise the cost to the retailer and so encourage the uptake in retail outlets.

It succeeded magnificently; there are now about 2 billion eftpos transactions in Australia each year.

But from tomorrow the retailer's bank will pay the 5 cent fee.

Russell Zimmerman, the executive director of the Australian Retailers Association, says some businesses may absorb the fee.

"Some retailers will need to surcharge but I think you'll find the majority of our retailers out there will not be surcharging," he said.

"They don't surcharge currently for Visa credit cards or Mastercards and the same with both of those schemes, and often don't charge for American Express or Diner's Club cards, which often have a much higher interchange fee than what eftpos has."

But Mr Zimmerman says some retailers may need to charge a small fee.

"For some retailers, particularly retailers in very low profit rating ... you may see them come up and decide that they're going to charge a small fee at the counter," he said.

"There are all sorts of retailers that have got high-volume, low-profit-margin goods and those retailers will need to consider whether or not they need to surcharge."
Up against the banks

The company which manages eftpos, ePAL, is owned by the big four banks along with Coles and Woolworths.

A spokesman declined an interview but says the charge was designed to deliver more money for debit card technology so it could compete against the new chip technology being used in credit cards.

Jost Stollman's company Tyro provides the eftpos banking services for many retailers, competing against the banks for the business.

He now faces paying the charge without receiving any money in return, so is at an instant disadvantage.

"For our merchants and for us, this is a very significant change in the fee structure in the Australian market," he said.

"Take the example of a small newsagent. He's actually competing with Coles and Woolworths when he sells his newspaper and if he is charged 5 cents more or less on each transaction [that] makes a difference to his bottom line."

Mr Stollman says if the banks pass on the charge to retailers and pocket it as card-holding banks, they could reap $150 million a year.

Westpac says it will pass on the charge. ANZ says it has not decided what to do, while the Commonwealth Bank and the National Australia Bank have not yet responded to the ABC's request for comment.

'Way over the top'

Consumer group Choice is worried the retailers will now pass the extra cost on to customers.

Spokesman Christopher Zinn believes what used to be a free swipe will end up costing something.

"I have already found a Chinese restaurant in Bondi that last week, before any changes, was charging a 2 per cent fee for eftpos," he said.

"Now if you bear in mind that $15 is free, there's no fee for $15 and after $15 it's 4 or 5 cents, there's really no justification for any kind of fee with percentages.
"It's way over the top. I'm afraid either through ignorance or opportunism we're starting to see these fees creep in and I think consumers need to be aware of that, resist and question them where they can."

http://www.abc.net.au/news/2011-09-3...es-twt/3204230

Thank you coles and woolies...

[MITCHAY]

Wow 5 cents. 1000 transactions is $50 assuming that they were all $15 or more and the retailers only pass on the 5 cents to cover it

[Geez Louise]

It took them long enough...Surprised it wasn't bought in sooner.

People are so use to paying by card now, and 5c doesn't seem alot, but think of how many transactions you make with EFTPOS? Work that out over a year and you will be surprised!

[GS608]

Problem is some retailers will take advantage of this and charge a % like mentioned in the article and not the flat fee of 5c

[Jim Goose]

5cents now.... 10cents in 6months...a dollar in a year..... can't expect it to remain the same once they get the taste of it.

[The G6ET Spot]

Originally Posted by MITCHAY

Wow 5 cents. 1000 transactions is $50 assuming that they were all $15 or more and the retailers only pass on the 5 cents to cover it

When only 1000 transaction it doesn't sound a lot. But when it adds up to billions of transactions it adds up very quickly

According to figures released by eftpos, the network processed more than 1 billion transactions in the December half, valued at about $65 billion.

Also don't forget who actually owns the eftpos network. The banks themselves with Woolworths and Coles.

being the reason why Aldi has taken this to the supreme court for a ruling

[Fairlane]

People wonder why I use cash.

Its pretty counterproductive they are trying to get us using cash because physically handling cash is difficult and expensive.

[geckoGT]

It is a pity that the Australian public tend to accept things quietly, imagine just one week of coordinated cash only transactions by the public as a protest. The losses suffered by the eftpos system would be huge.

[Bucknaked]

how long have we been paying a % fee on Credit Card Transactions and $2 for an atm? People are concerned about paying an extra 5c.

5c. Yep, its the end of the world.

[Jim Goose]

Originally Posted by Bucknaked

how long have we been paying a % fee on Credit Card Transactions and $2 for an atm? People are concerned about paying an extra 5c.

5c. Yep, its the end of the world.

An ATM is free if you use your own banks ATM.... If people are silly enough to use any ATM they they pay.

EFTPOS is used more then using an ATM by the average person these days.
How many times do you use an ATM to withdraw cash as opposed to just simply paying with EFTPOS?

End of the world? Hey if you want to bend over and take it, good for you, but when has a fee/ tax remained the same?
Do you honestly believe that fee will stay the same?
Look at all the bank fees you pay now.

[Ben73]

Originally Posted by Bucknaked

how long have we been paying a % fee on Credit Card Transactions and $2 for an atm? People are concerned about paying an extra 5c.

5c. Yep, its the end of the world.

The answer to your questions, Never and once every blue moon.

Its a bit different to being charged an extra fee on all of your purchases.

I might go back to using a cash only, like I use to.
Only pay with EFTPOS for stuff over $500

**** the fee. Its only 5c but Id rather keep it myself then give it to them.
All of those 5c would add up over a long period of time.

[gtxb67]

consumers will now be charged to have the convenience of using eftpos. while the banks are involved somehow it is the card company that is charging. I am unsure why people expect all of the technological advances we consider essential to be free. someone designed the system using many hours and no doubt many dollars. they designed it make themselves wealthy. how many crying consumers would be willing to do it for free

if you do not like it, use cash

[wulos]

So there are now 2Billion eftpos transactions a year. Given that this "fee" is intended on purchases over $15. Worst case scenario every one of those transactions are over the $15.00 threshold. Doing the sums 2,000,000,000 x 0.05 = 100,000,000 (or at least it was when I went to school) From the article the ABC claims $150mil a year??
5c might not sound like much, but retailers have been using clever pricing strategy since it's inception to maximise on their profits(How many products are rounded UP to the nearest 5c, rather then DOWN?). Whilst this only effects cash purchases, it is still a game of percentages. The cynic in me wonders just how long it will be before the humble 5c piece is removed from circulation.

[FPV+fteT3]

Originally Posted by gtxb67

consumers will now be charged to have the convenience of using eftpos. while the banks are involved somehow it is the card company that is charging. I am unsure why people expect all of the technological advances we consider essential to be free. someone designed the system using many hours and no doubt many dollars. they designed it make themselves wealthy. how many crying consumers would be willing to do it for free

if you do not like it, use cash

The technological advances were paid for by the consumer with bank fees as the 4 banks with other 2 giants own eftpos (the card company). The reason the banks and coles, woolies paid for the infra structure was to save money on employing tellers and closing down branches and stores now we are used to the idea and the tellers and branches are gone we the public will have no choice in some areas but to pay what is essentially a tax by the banks.
The same way they increase loan interest percentage rates above reserve bank levels simply because they can they have a monopoly and collude with each other, funny the St.George adds currently running spruking we love our bank...read the disclaimer along the bottom of your screen its owned by westpac...what a suprise the bird running westrac worked for st gouge before joing team red and paved the way for the building society to join the bank.

[gtxb67]

it was never intended to make our lives easier, it was intended to make money for a select group of people. just like fuel dockets and cheap milk. consumers have built this beast and are now complaining even though the end result was obvious

[flappist]

Originally Posted by wulos

So there are now 2Billion eftpos transactions a year. Given that this "fee" is intended on purchases over $15. Worst case scenario every one of those transactions are over the $15.00 threshold. Doing the sums 2,000,000,000 x 0.05 = 100,000,000 (or at least it was when I went to school) From the article the ABC claims $150mil a year??
5c might not sound like much, but retailers have been using clever pricing strategy since it's inception to maximise on their profits(How many products are rounded UP to the nearest 5c, rather then DOWN?). Whilst this only effects cash purchases, it is still a game of percentages. The cynic in me wonders just how long it will be before the humble 5c piece is removed from circulation.

5c is already gone in NZ.

Mt personal protest is that none of my family will spend any money whatsoever with either Woolworths or Coles.
All of our food comes from IGA, bakers, butchers, fruits shops, fish mongers etc.

It is a tiny protest and would not even be a pimple on a blip on their radars but if everyone did the same they would pull their heads in quick smart.

Another protest is to use cash exclusively and NEVER use the "flybuys" cards. It actually costs them a lot to handle cash with extra security as well as making them potential robbery targets (therefore more expense and OHS issues) and they don't get any buyer trend information.

But this is Australia and we will just go the cheapest and not care about anything or anyone except ourselves........

[pottery beige]

Originally Posted by flappist

But this is Australia and we will just go the cheapest and not care about anything or anyone except ourselves........

bingo....

[gtxb67]

Originally Posted by pottery beige

bingo....

and that is society's fault, because . . . .

[pottery beige]

Originally Posted by gtxb67

and that is society's fault, because . . . .

the australian way... to whinge and moan... whinge and moan... do nothing and just be screwed over...

[FPV8U]

Originally Posted by pottery beige

the australian way... to whinge and moan... whinge and moan... do nothing and just be screwed over...

Sadly, Spot on.

[ebxr8240]

So paying for using EFTPOS when buying $120 worth ???
I would be walking... I kid you not...
If they don't accept my card I'll walk...
They make enough out of my cards etc....

[Jim Goose]

I have tried to use cash where possible and go once a week to an ATM to withdraw what I think ill need for the week, however, try and find an ATM which belongs to your bank within close proximity to where you live etc.

Banks have also closed down local branches and now have the bare minimum.
The local suburban branch I used to go to was there for over 30yrs and just up the road. It also had an ATM.

Go to a country town and see how many ATMs you can find which belong to your bank. or an actual Bank Branch.

Then when you actually find a real branch you stand in line for 15mins because only 2 out of 10 counters actually have tellers.

Its like Woolies and Coles... they have all but destroyed the opposition so you almost have little or no choice but to shop with them.

EFTPOS was free.... so nearly everyone has a card. It was convinient to use as just about every single business has one (if they didnt they would most certainly loose business as how many people actually carry cash these days?).

Now while everyone says.. its only 5cents.... and it only applies to transactions above $15, how many shops out there only allow a $10 minimum EFTPOS transactions? (which has been going on for a very long time).

Once people go back to useing cash, bet your bottom dollar that ATMs transactions will incur a fee for every transaction! What then?

[pottery beige]

just another silent tax.. fee.. levy.. its only 5c so the majority of minions will just ignore.. its only 5c.............

[gtxb67]

Originally Posted by Jim Goose

Its like Woolies and Coles... they have all but destroyed the opposition so you almost have little or no choice but to shop with them.

woolies and coles haven't destroyed the opposition. joe public has because he desperately needed to save $1.60 on fuel, while safe in the knowledge that by doing it the 2 big chains would gain a monopoly and then not only put the smaller stores out of business but would also jack up prices once it was achieved

Originally Posted by Jim Goose

how many shops out there only allow a $10 minimum EFTPOS transactions? (which has been going on for a very long time).

could they have this condition because until recently the little shops were the ones getting stung for eftpos fees, while coles and woolies were blissfully exempt. and even though the little stores were getting ripped off big time, joe public still chose not to shop with them because supporting his back pocket right here and now was more important than caring about a future without competition




it is funny that most people are willing to bleed their boss dry for extra money and yet if a company does it to them the said company is the scum of the earth

[Streets]

increase its charges so that banks can afford to invest in new debit card technology

Guys, guys

The banks are really struggling here; they need our help so they can invest in new technology to further their own profiteering

Why don't we lend them a hand, every little bit helps!

[nstg8a]

bakery down the road already has a 80c surcharge per transaction, and the nearest atm is one of the non-bank ones, and its $2.50 per transaction.

you pay for everything these days, the last $50 i put on my go via account, only $41 was actually credited, i had to pay a fee for using bpay, then another transaction fee. mongrels.

[T3man]

So what's new? This has been going on since dot. The power houses push customers to use whatever means reaps the best return. They offer a new service for free to make it the normal practice thus replacing the previous more costly normal practice. Once everyone is in step the costs then get added and no-one can do anything about it because by now the alternative is either no longer available or has been made even more expensive to use (for the consumer).

And if you think the big banks and supermarket/oil company conglomerates are the main offenders guess what? They learned it from the governments. Anyone running a book on how long it will be for the GST rate to be increased?

[Franco Cozzo]

Originally Posted by Jim Goose

Go to a country town and see how many ATMs you can find which belong to your bank. or an actual Bank Branch.

I used to be with Westpac since I opened my first term deposit with them 5 years ago, last year I got a debit card and every time I wanted to use an ATM around town I got the ol' $2 surcharge because there where none, so I switched to NAB which have a branch and an ATM in my town.

That $2 adds up fairly quickly.

[HULK EF]

cash is king!. although only a matter of time until they charge us a handlingand holding fee on cash.. (probably using cash theft as an excuse)

[nstg8a]

Originally Posted by HULK EF

cash is king!. although only a matter of time until they charge us a handlingand holding fee on cash.. (probably using cash theft as an excuse)

plenty of places already do.