Regional Small Businesses Face Rising Costs Amid Card Fee Reforms
Regional small businesses in Australia are facing rising operating costs and changes to card payment surcharges. According to ABC News, owners of rural and regional communities say they are under constant pressure due to increasing expenses.
Retail Therapy owner Francene Martin in Keith, a town with about 1,400 people on the Dukes Highway between Melbourne and Adelaide, reported no sales during a Sunday trading day despite a 50% off sale. She operates in an area where major online retailers like Amazon, Temu, and Shein are present.
Prey cafe operations manager Frazer Wyley in Ballarat said small operators face 'insidious cost creep' behind the scenes. He estimated that the expenses built into a cup of coffee include cups, lids, water, wages, superannuation, EFTPOS fees, and ingredients, leaving margins of less than 10 cents.
The Reserve Bank of Australia estimates its reforms will save businesses $910 million annually through reduced transaction fees. However, business advocates and industry experts have warned that removing credit and debit card surcharges could shift payment-system costs to small businesses.