Small business price rises likely as surcharge ban bites
Only 12 per cent of small businesses raised prices three weeks after the October card surcharge ban, but more are expected soon.
Six weeks ago, a ban on card surcharges forced small shops to absorb payment costs they used to pass to customers. Payment provider Tyro found that only 9.4 per cent of merchants raised prices in the first week.
By week three, that jumped to 12.4 per cent. Some raised prices by up to 10 per cent.
Businesses are also squeezed by higher rent, power bills, wages, and interest rates. Tyro's head said merchants are "trying to juggle not just the surcharge but all the other input costs."
Some shops raised prices early in July to get ahead of the ban. Retailers still pay banks an interchange fee and merchant fees, so the ban did not remove all payment costs.
- 12.4 per cent of merchants
- Week 3 price increases
- 80,000
- Tyro merchants
- up to 10 per cent
- Some price rises
Why it mattersConsumer prices at cafes and restaurants are likely to rise as small businesses pass on accumulated costs.
AustraliaAustralians spending on food, coffee and retail face price increases over the next two months as small businesses adjust to new payment rules and cost pressures.
✓ Claims checked against the source. checked 15 h ago
