Latest news with #RichardWormald
News.com.au
5 days ago
- Business
- News.com.au
‘Still cheaper than cash': One fee Australians are tired of paying
The bulk of Australian consumers say businesses should be banned from passing on surcharges, with figures showing it is actually a cheaper form of payment than cash. According to survey data commissioned by MasterCard, 69 per cent of Aussies believe card surcharge payments should be banned. A further 85 per cent of Australians say they think these fees should be considered as part of the cost of doing business, with 40 per cent wanting it to be factored into the advertised produce cost, while 45 per cent say the merchant should just absorb the cost. MasterCard division president Australasia Richard Wormald told NewsWire despite customer frustrations businesses should not be absorbing the costs completely. 'Digital payments are another cost of doing business, like coffee beans, rent or wages, and there are real costs involved in providing them,' he said. Mr Wormald said while merchant service fees turn the average cup of coffee up from $5 to $5.08, it is still cheaper than accepting cash, which usually adds around 20 cents per cup of coffee. Currently businesses do not pass on the cost of customers using cash. 'But card payments are actually the cheapest way for retailers to get paid, costing less than half as much as accepting cash,' he continued. 'They should build it into their pricing, just like any other input, which also makes the cost clearer for customers and builds trust.' Last month the Australian Competition and Consumer Commission reminded businesses to ensure they are being transparent with their customers before any card payment surcharges. ACCC deputy chair Mick Keogh said over the coming financial year, consumer law and compliance regarding 'misleading surcharge practices' will take top priority. 'Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,' Mr Keogh said. 'We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business, however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers. Prime Minister Anthony Albanese and Treasurer Jim Chalmers previously announced plans to move on excessive card surcharges, as part of a number of proposed reforms to help with the cost-of-living. The government said any reduction surcharges would come in consultation with the Reserve Bank of Australia. Mr Wormald said Australian businesses would likely be able to adapt if the ban on surcharges is passed by the government. 'We've seen in markets like the UK that banning surcharges saw small businesses adapt by building the cost of payments into their pricing, just like any other input,' he said. 'A ban would force businesses to take a closer look at those services, find better value, and ultimately deliver a fairer experience for consumers.' He also dismissed claims it could be inflationary because small businesses would simply slug customers $5.50 a coffee instead of the current $5 plus a $0.08 payment fee. 'The idea that factoring in payment costs would be inflationary does not really stack up. Consumers are already paying these costs through surcharges, so including them in the advertised price does not change what people are paying, Mr Wormald said. 'It just makes the cost more transparent. And in instances where businesses find a better deal that meets their needs elsewhere, factoring in a lower payment cost could lead to lower prices and be deflationary, not inflationary.'
Perth Now
5 days ago
- Business
- Perth Now
One cost Aussies think businesses should bear
The bulk of Australian consumers say businesses should be banned from passing on surcharges, with figures showing it is actually a cheaper form of payment than cash. According to survey data commissioned by MasterCard, 69 per cent of Aussies believe card surcharge payments should be banned. A further 85 per cent of Australians say they think these fees should be considered as part of the cost of doing business, with 40 per cent wanting it to be factored into the advertised produce cost, while 45 per cent say the merchant should just absorb the cost. MasterCard division president Australasia Richard Wormald told NewsWire despite customer frustrations businesses should not be absorbing the costs completely. The majority of Australians say businesses should pay the surcharge on products. NewsWire / Nikki Short Credit: News Corp Australia 'Digital payments are another cost of doing business, like coffee beans, rent or wages, and there are real costs involved in providing them,' he said. Mr Wormald said while merchant service fees turn the average cup of coffee up from $5 to $5.08, it is still cheaper than accepting cash, which usually adds around 20 cents per cup of coffee. Currently businesses do not pass on the cost of customers using cash. 'But card payments are actually the cheapest way for retailers to get paid, costing less than half as much as accepting cash,' he continued. 'They should build it into their pricing, just like any other input, which also makes the cost clearer for customers and builds trust.' Business owners say they are still falling behind despite the 15 per cent Easter holiday surcharge Last month the Australian Competition and Consumer Commission reminded businesses to ensure they are being transparent with their customers before any card payment surcharges. ACCC deputy chair Mick Keogh said over the coming financial year, consumer law and compliance regarding 'misleading surcharge practices' will take top priority. 'Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,' Mr Keogh said. A total breakdown on why it costs $5.08 for a cup of coffee: Supplied Credit: Supplied 'We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business, however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers. Prime Minister Anthony Albanese and Treasurer Jim Chalmers previously announced plans to move on excessive card surcharges, as part of a number of proposed reforms to help with the cost-of-living. The government said any reduction surcharges would come in consultation with the Reserve Bank of Australia. Mr Wormald said Australian businesses would likely be able to adapt if the ban on surcharges is passed by the government. 'We've seen in markets like the UK that banning surcharges saw small businesses adapt by building the cost of payments into their pricing, just like any other input,' he said. 'A ban would force businesses to take a closer look at those services, find better value, and ultimately deliver a fairer experience for consumers.' He also dismissed claims it could be inflationary because small businesses would simply slug customers $5.50 a coffee instead of the current $5 plus a $0.08 payment fee. 'The idea that factoring in payment costs would be inflationary does not really stack up. Consumers are already paying these costs through surcharges, so including them in the advertised price does not change what people are paying, Mr Wormald said. 'It just makes the cost more transparent. And in instances where businesses find a better deal that meets their needs elsewhere, factoring in a lower payment cost could lead to lower prices and be deflationary, not inflationary.'
West Australian
5 days ago
- Business
- West Australian
‘Still cheaper than cash': One fee Australians are tired of paying
The bulk of Australian consumers say businesses should be banned from passing on surcharges, with figures showing it is actually a cheaper form of payment than cash. According to survey data commissioned by MasterCard, 69 per cent of Aussies believe card surcharge payments should be banned. A further 85 per cent of Australians say they think these fees should be considered as part of the cost of doing business, with 40 per cent wanting it to be factored into the advertised produce cost, while 45 per cent say the merchant should just absorb the cost. MasterCard division president Australasia Richard Wormald told NewsWire despite customer frustrations businesses should not be absorbing the costs completely. 'Digital payments are another cost of doing business, like coffee beans, rent or wages, and there are real costs involved in providing them,' he said. Mr Wormald said while merchant service fees turn the average cup of coffee up from $5 to $5.08, it is still cheaper than accepting cash, which usually adds around 20 cents per cup of coffee. Currently businesses do not pass on the cost of customers using cash. 'But card payments are actually the cheapest way for retailers to get paid, costing less than half as much as accepting cash,' he continued. 'They should build it into their pricing, just like any other input, which also makes the cost clearer for customers and builds trust.' Business owners say they are still falling behind despite the 15 per cent Easter holiday surcharge Last month the Australian Competition and Consumer Commission reminded businesses to ensure they are being transparent with their customers before any card payment surcharges. ACCC deputy chair Mick Keogh said over the coming financial year, consumer law and compliance regarding 'misleading surcharge practices' will take top priority. 'Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,' Mr Keogh said. 'We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business, however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers. Prime Minister Anthony Albanese and Treasurer Jim Chalmers previously announced plans to move on excessive card surcharges, as part of a number of proposed reforms to help with the cost-of-living. The government said any reduction surcharges would come in consultation with the Reserve Bank of Australia. Mr Wormald said Australian businesses would likely be able to adapt if the ban on surcharges is passed by the government. 'We've seen in markets like the UK that banning surcharges saw small businesses adapt by building the cost of payments into their pricing, just like any other input,' he said. 'A ban would force businesses to take a closer look at those services, find better value, and ultimately deliver a fairer experience for consumers.' He also dismissed claims it could be inflationary because small businesses would simply slug customers $5.50 a coffee instead of the current $5 plus a $0.08 payment fee. 'The idea that factoring in payment costs would be inflationary does not really stack up. Consumers are already paying these costs through surcharges, so including them in the advertised price does not change what people are paying, Mr Wormald said. 'It just makes the cost more transparent. And in instances where businesses find a better deal that meets their needs elsewhere, factoring in a lower payment cost could lead to lower prices and be deflationary, not inflationary.'
West Australian
5 days ago
- Business
- West Australian
Australian consumers say businesses should be banned from passing on surcharges
The bulk of Australian consumers say businesses should be banned from passing on surcharges, with figures showing it is actually a cheaper form of payment than cash. According to survey data commissioned by MasterCard, 69 per cent of Aussies believe card surcharge payments should be banned. A further 85 per cent of Australians say they think these fees should be considered as part of the cost of doing business, with 40 per cent wanting it to be factored into the advertised produce cost, while 45 per cent say the merchant should just absorb the cost. MasterCard division president Australasia Richard Wormald told NewsWire despite customer frustrations businesses should not be absorbing the costs completely. 'Digital payments are another cost of doing business, like coffee beans, rent or wages, and there are real costs involved in providing them,' he said. Mr Wormald said while merchant service fees turn the average cup of coffee up from $5 to $5.08, it is still cheaper than accepting cash, which usually adds around 20 cents per cup of coffee. Currently businesses do not pass on the cost of customers using cash. 'But card payments are actually the cheapest way for retailers to get paid, costing less than half as much as accepting cash,' he continued. 'They should build it into their pricing, just like any other input, which also makes the cost clearer for customers and builds trust.' Last month the Australian Competition and Consumer Commission reminded businesses to ensure they are being transparent with their customers before any card payment surcharges. ACCC deputy chair Mick Keogh said over the coming financial year, consumer law and compliance regarding 'misleading surcharge practices' will take top priority. 'Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,' Mr Keogh said. 'We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business, however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers. Prime Minister Anthony Albanese and Treasurer Jim Chalmers previously announced plans to move on excessive card surcharges, as part of a number of proposed reforms to help with the cost-of-living. The government said any reduction surcharges would come in consultation with the Reserve Bank of Australia. Mr Wormald said Australian businesses would likely be able to adapt if the ban on surcharges is passed by the government. 'We've seen in markets like the UK that banning surcharges saw small businesses adapt by building the cost of payments into their pricing, just like any other input,' he said. 'A ban would force businesses to take a closer look at those services, find better value, and ultimately deliver a fairer experience for consumers.' He also dismissed claims it could be inflationary because small businesses would simply slug customers $5.50 a coffee instead of the current $5 plus a $0.08 payment fee. 'The idea that factoring in payment costs would be inflationary does not really stack up. Consumers are already paying these costs through surcharges, so including them in the advertised price does not change what people are paying, Mr Wormald said. 'It just makes the cost more transparent. And in instances where businesses find a better deal that meets their needs elsewhere, factoring in a lower payment cost could lead to lower prices and be deflationary, not inflationary.'
Yahoo
12-04-2025
- Business
- Yahoo
Major Aussie banks respond as cashless trend set to overhaul 16-digit cards
Commonwealth Bank (CBA) and Westpac could soon jump on Mastercard's new numberless cards. The card juggernaut has argued that removing the 16 digits on a card would reduce fraud by preventing criminal hackers from stealing your static details. The move would be accompanied by a new, biometric checkout process, known as 'Click to Pay'. A Westpac spokesperson told Yahoo Finance the bank is "yet to make a decision" on the advancement, however, CBA seemed more inclined to take the plunge. It said it is excited about the concept and that numberless cards are one of the innovative solutions that it's exploring to crack down on fraud. RELATED Card surcharge fees hit $1.3 billion 'record high' as business owners slogged in cashless 'rort' Centrelink closures and payment changes to hit millions from next week $500K superannuation reality check for 'lazy' Aussies vulnerable to cyber attacks Mastercard's Australasia president Richard Wormald told Yahoo Finance each bank would have to decide if the change would be right for their customers. "They always have to think about how a broad range of communities in their customer base might be impacted, where fintechs might not have such a broad customer base," Wormald said. "A lot of their focus has not been on the technical readiness. "It's been on making sure that their data environments are set up, and that they have the right customer consent to roll it out. "But this year, you will see some of them move."As for the other Big Four banks, NAB and ANZ, they use Visa, which has the same numberless card technology at the ready. NAB said it's still working with the card company to see how it can roll out the new development as seamlessly as possible. ANZ told Yahoo Finance that it's always look at new opportunities to protect customers against scams and fraud. Customers already have access to a dynamic CVV that changes every 12 hours, which is the code on the back of your card. "Customers can find their unique three-digit code in the ANZ Plus app giving them greater control and smarter protection against fraud," a spokesperson said. Yahoo Finance has reached out to Visa for comment. AMP was one of the first banks to dish out the new numberless cards back in February to its small business and personal banking customers. Card fraud is a $1 billion problem in Australia and these new cards are aimed at reducing that number. Under the new system, you'll have to log into your banking app, which will produce a new 16-digit card and CVV number, and you'll use that to pay for something online. This means that if your card details are harvested in a hack or data leak, they won't be able to be used by bad actors because they keep changing. "For many years, there are places you go online where you have to put in a 16-digit card number," Wormald said. "When that happens, that creates a weakness, because those card numbers can be stolen. The retailer gets hacked and the data gets stolen. "So they steal the card number, the expiry, your name and address, the three-digit code, they steal everything, and then they go and use those stolen data on another website in another country, and they defraud the consumer." Wormald believed Australia could be the first country to adopt numberless cards "across the board", however, that will depend on banks' willingness to adopt it. Fat Zebra's CEO, Pred Dragila, is concerned that producing 16 new digits each time you want to shop, it could slow down the whole process because you have to use your phone or log into your online banking to find your new card details. The payments company provides technology for the likes of Moshtix, MYOB, RACQ and Aussie Broadband, and processes over 250 million transactions each year. 'In theory, removing card numbers will make it harder for scammers, but practically, rolling this out will be a very big task,' Dragila said. 'This could add complexity and create a barrier for online commerce. The moment you make a customer think about a transaction, you reduce the probability of it happening.'Sign in to access your portfolio
