As hospitality businesses struggle with rising costs, they are increasingly finding ways to pass those costs on to consumers.
The latest charges involve surcharges on customers who pay their bills by card or smartphone.
Pubs and bars, cafes, restaurants, and fast-food outlets are all getting in on the action as their bottom lines are threatened by inflation.
Payment provider Tyro reports that 40 per cent of cafes and restaurants levied surcharges in May 2023, compared to 25 per cent in May 2022.
41 per cent of pubs and bars added surcharges compared with 29 per cent last year.
Tyro surveyed more than 66,000 business customers. The survey also showed that over the same period, fast-food businesses surcharging increased to 26 per cent from 16 per cent.
“Our data indicates that more merchants are looking to offset payment acceptance costs through surcharging, which may suggest that inflationary pressures have resulted in higher costs to run their businesses,” chief executive officer of Tyro Payments Jon Davey said.
A surcharge, as laid out by the Australian Competition and Consumer Commission (ACCC), must only reflect the actual costs to the business of accepting payment by card.
It can be more expensive for a business to accept payment with premium awards credit cards and international cards.
A flat fee or percentage is usually charged.
There is a ban on excessive surcharging. However, this does not apply to BPAY, PayPal, Diners Club, American Express cards issued directly by American Express, or taxi fares.
A surcharge must be clearly displayed if there is no way for a customer to pay without incurring a surcharge. Note that a business is not legally obliged to accept cash.
It is common for businesses to charge anywhere between 1.5 per cent and 3 per cent. Some merchants aren’t clearly advising customers of a surcharge, either.
POSmate warns of wasting money on surcharges.
“Consumers should always ask if they are being surcharged and how much. If it seems excessive, raise that with the merchant or consider shopping elsewhere.”
Interested in exploring how POSmate Point of Sale System Solutions and EFTPOS Payment Solutions can help your business?
To find out more information about Merchant Payment Solutions, please call POSmate on 1300 76 76 88 to speak to one of our Point of Sale POS System Solutions Specialists or email us at sales@posmate.com.au and mention “EFTPOS”