Latest news with #surcharging
Finextra
21-07-2025
- Business
- Finextra
RBA proposes to lower cap on interchange fees
The Reserve Bank of Australia (RBA) has today released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging. 0 This follows an extensive public consultation process since the release of an Issues Paper in October 2024. The Payments System Board has reached the preliminary view that it would be in the public interest to: remove surcharging on eftpos, Mastercard and Visa cards. Consumers currently pay around $1.2 billion in card surcharges each year. Surcharging is no longer achieving its intended purpose of steering consumers to make more efficient payment choices: avoiding surcharges has become harder as cash usage has declined, businesses are increasingly charging the same surcharge rate across debit and credit and there are significant challenges with enforcing the current surcharging rules. Removing surcharging would make card payments simpler, more transparent and help to increase competition in the card payments system. lower the cap on interchange fees paid by businesses. This could save businesses around $1.2 billion in interchange fees a year. Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies. The proposed reductions to interchange caps would benefit small businesses the most, as they tend to pay fees closer to the existing caps. Introducing caps on foreign interchange fees would help to lower fees for all businesses accepting international cards. require card networks and large acquirers to publish the fees they charge. Improving transparency and competition will help all players better understand the fees they are charged and make it easier for businesses to shop around for a better deal. The RBA invites feedback on the proposed policy options and draft standards by 26 August 2025. The RBA will draw on this feedback to finalise reforms that are in the public interest in line with its objectives of a safe, competitive and efficient payments system. The RBA intends to publish these conclusions and an implementation timeline for any regulatory steps by the end of the year.
Bloomberg
14-07-2025
- Business
- Bloomberg
Australia Proposes to Remove Credit and Debit Card Surcharging
Australia's central bank wants merchants to remove surcharging on credit and debit card payments, in a move that could save consumers about A$1.2 billion ($785 million) a year. The Reserve Bank estimates the aggregate impact on consumer prices from a removal of surcharging would be 'very small' at around 0.1 percentage point, according to a consultation paper released in Sydney on Tuesday. The RBA will consult on its proposals for six weeks and then release a conclusions paper at the end of the year. It aims to implement the changes from mid-2026.
Entrepreneur
09-07-2025
- Business
- Entrepreneur
Why Surcharging Is a Bad Move For Small Businesses — and What to Do Instead
Before you add credit card surcharges, learn what the big players know — and how to protect your business from costly mistakes. Opinions expressed by Entrepreneur contributors are their own. I belong to a CEO peer group, and I love connecting with leaders who are further along in their journey. I work hard to keep my mouth shut and my ears open — because let's be honest, they have way more to teach me than I have to teach them. I also love it when they let me record our conversations on Plaud so I can revisit the gold later. I used to think that most CEOs and business owners approached their growth the same way: by learning from those ahead of them. But lately, I'm starting to wonder. Why? Because right now, I'm watching a surcharging frenzy unfold. Small and midsize merchants are racing to add extra fees to customers' bills to cover credit card processing costs. Yet not one major player is doing it. Not Apple. Not Walmart. Not Amazon. Not Target. Not Costco. None of them. So, what do they know that others don't? Related: Is Your Credit Card Processor Secretly Costing You a Fortune? Watch for These 5 Red Flags What is surcharging (and why should you care)? Surcharging means adding a fee at checkout to cover the cost of customers paying with a credit card. It sounds simple. But staying compliant with some of the states and card-brand rules is anything but. Each card network (e.g. Visa, Mastercard) has its own set of rules, and some states ban surcharges altogether. The result? A regulatory mess where one slip-up can lead to fines, customer backlash or both. Why the big players avoid it Big companies have armies of lawyers and compliance experts. They also utilize firms to help them reduce their fees without ticking off customers. Most importantly — they understand the hidden dangers of surcharging: Legal risks: Missteps can trigger fines from card networks or regulators. Fines can exceed $10,000 per violation. Processor traps: Many merchant agreements let processors pass their own fines onto you if you're caught surcharging incorrectly. That means you could get hit twice. Customer friction: Surcharges annoy customers. Studies show surprise fees lead to higher cart abandonment rates and fewer return visits. In short: Big companies know that surcharging often costs more in lost business and legal headaches than it saves on fees. What's really driving up your fees? Here's the kicker: If your merchant fees are climbing, it's probably not because the networks are hiking their rates. Interchange fees — the core cost of processing — have barely budged in the last 15 years. So where's the extra cost coming from? Inflated fees: This is when a processor inflates the actual cost of the fees, i.e. charging you 2.95% when the exact fee is only 2.25%. Made up hidden fees Charging high discount rates, your discount rate should be fully disclosed, broken out, and only between 2 and 7 basis points at most, and if you are processing over $10 million a year, more than 4-5 basis points, over $100 million a year, 2-3 basis points. Keeping rebates: Most businesses are unaware that they should receive their processing fees back on returned or voided sales, and the credit card processor pockets those refunds. For merchants with a high volume of returns, this can add up significantly. What smart business owners do instead If you want to reduce credit card processing costs without the risks of surcharging, here's the playbook: Get a merchant processing audit: An independent audit can reveal hidden fees, excessive markups, and junk charges. At my firm, we see clients reduce their fees as much as 40%. To be fully transparent, several firms offer this service, so be sure to do your research and find the one that best suits your needs. Ask about interchange optimization: This ensures your transactions qualify for the lowest possible rates under the existing rules — no customer friction required. Make sure they show you that your transactions are clearing at the lowest interchange. Don't just take their word for it. If you must surcharge, get expert help: Work with a firm that understands all state laws and card-brand rules. Ensure you're registered properly and following the strict requirements — because one mistake can cost you dearly. Also, there are firms that will take ownership of the compliance and cover your fines should you get fined. Related: How to Choose a Credit Card for Your Startup My final thoughts How do you feel when you get surcharged? Business becomes increasingly competitive every day, and I believe most people will do business where they feel wanted and valued, which is a lost art, but not everywhere. Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.
Yahoo
11-06-2025
- Business
- Yahoo
LQpay Expands Compliant Surcharging Solution, Optimizing Payment Strategy for Healthcare Practices
End-to-End Compliant Credit Surcharging with Custom Integration Now Available PLANTATION, Fla., June 11, 2025 (GLOBE NEWSWIRE) -- LQpay, a leading provider of innovative patient payments and automation technology, announced the expansion of its end-to-end compliant credit card surcharging solution, empowering healthcare practices to optimize their payment strategy and more seamlessly defray operational costs without sacrificing efficiencies or the patient experience. The latest enhancements enable medical and dental organizations to pass along credit card processing fees and serve up the necessary disclosures to patients across all eligible channels, encompassing both in-office and remote payment types, such as recurring billing plans, text- and email-to-pay, card on file, etc. In addition, by leveraging its proprietary RPA (Robotics Processing Automation) technology, LQpay has the unique capability to customize the integration of these payment types into any underlying EMR/practice management system. This custom integration capability allows practices to tailor the posting and reporting of surcharged transactions according to their unique workflows, business requirements, and practice management systems. By automatically calculating and applying compliant surcharges to eligible credit card transactions and facilitating accurate record-keeping of patient accounts, healthcare practices can reduce operational expenses without increasing administrative burden. As payment processing costs continue to rise, healthcare providers face continuous pressure on operating margins. LQpay's enhanced surcharging platform offers a powerful, compliant way for practices to offset these expenses without disrupting workflows or compromising the patient experience. 'Today's healthcare practices need more than a payment processor. They need a partner who can help them navigate complexity while protecting profitability,' said Shashi Kapur, CEO of LQpay. "Based on valuable feedback from our customers and partners, along with our dedication to innovation, we are proud to be a premier payments technology provider merging end-to-end compliant surcharging with robust Robotics Processing Automation (RPA). Our expanded surcharging capabilities provide healthcare organizations with a turnkey, compliant way to reduce costs and operate more efficiently.' Since its initial introduction, LQpay's compliant surcharging feature has provided practices with a valuable tool to offset the growing expense of payment processing fees. Recognizing the evolving needs of the healthcare industry and LQpay's commitment to continuous improvement, these enhancements truly set LQpay apart in the industry, ensuring practices experience greater efficiency and maximized financial benefit. Key Benefits of LQpay's Surcharging Enhancement: Optimized payment strategy ensuring credit card processing fees are consistently offset, regardless of how patients choose to pay. Custom integration with practice management systems (PMS). Unlike generic surcharge options, payments are automatically posted according to each practice's workflow and reporting requirements. Certified, compliant solution aligned with processor mandates, card network rules, and applicable state and regional regulations. Configurable patient communications and transparent fee disclosures to ensure patients are clearly informed about surcharges before payment and provided options for alternative, non-surcharge payment methods (e.g., ACH, debit, cash). Real-time reconciliation and reporting tools with detailed dashboard, making it easy to track surcharge revenue and monitor compliance without manual record-keeping. The surcharging capability is now available to both new and existing LQpay customers using approved payment gateways. Practices eager to enhance their financial performance and reduce processing expenses are encouraged to schedule a personalized demonstration. About LQpay Based in Plantation, FL, LQpay stands as a leading end-to-end patient payments platform, dedicated to serving the healthcare, dental, and veterinary practices. By integrating cutting-edge automation, AI-powered integrations, and modern payment functionalities such as text-to-pay and auto-posting, LQpay empowers practices to streamline operations, accelerate cash flow, and elevate the overall patient financial experience. For more information or to schedule a demo, please visit CONTACT: Press Contact: 954.909.5948 info@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
