Contactless funds have risen considerably throughout the COVID-19 pandemic, which has resulted in increased charges for smaller retailers, as banks ship contactless funds through pricey bank card networks as an alternative of the cheaper Eftpos system.
Some smaller retailers have lobbied the federal government and the Reserve Bank to push banks to ship tap-and-go funds down cheaper cost channels, comparable to Eftpos.
“Retailers should be very concerned about the surge in tap-and-go from a cost perspective but they have options to reduce that cost significantly,” Stephen Benton, the CEO of Eftpos Australia, advised the Australian Monetary Evaluation. “They should talk to the banks about switching on least-cost routing as soon as possible.”
Such charges are typically not an issue for bigger retailers, as they’re able to utilise the cheaper funds programs instantly.
“COVID-19 has put personal hygiene front and centre for Australians and this includes the way we pay for goods and services. Many retailers are requesting contactless payment be used rather than handling cash to reduce the opportunities for passing on COVID-19,” stated Roy Morgan CEO Michele Levine.
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