The Government is planning to ban merchants from adding surcharges to in-store card payments, a change they say that will save shoppers from the unwelcome surprise they get at the till. Go the Government for protecting the consumer!
Well, no, hang on a minute. My first thought was well, surely the retailers will simply pass on the cost that they have to pay to the banks for the privilege of having debit cards, contactless payments, and credit cards. The bank charges them because the credit card companies charge them, the banks certainly aren't going to absorb it. The retailers say, well, if you want the privilege of contactless payment if you want the convenience of that, then you can pay the charge. But now they're going to have to absorb it.
My second thought was now I'm going to be paying more. I don't Tap and Go. I very seldom Tap and Go. I've got a business account and a personal account, and when I pay for something, I'll insert my card, select the account, and pay that way. It’s supposed to make things easier for the accountant, and I avoid the surcharge. So when the retailers pass on the cost of the surcharge, anyone else who inserts and pins or swipes and pins will be paying too.
Heather du Plessis-Allan covered most of my objections when I was listening to her interview with Scott Simpson last night. How can this possibly be trumpeted as a boon to consumers when all that happens is the price of goods will go up to cover the surcharge? Why not go after the credit card companies? And the banks?
I could certainly understand charging a surcharge in the olden days when we had the zip zap credit card machines. There would undoubtedly have been a cost involved in processing all that paper. But now? Come on. Sure, there are costs in terms of fraud protection and there'd be other costs involved if you want to use your credit card and have that added protection, then you pay the surcharge. I don't see why the retailer should pay it, and I don't see why I should pay it when I'm not using that facility.
Why didn't the Government go after the Ticketmasters, and the Air New Zealands, and the hotels of this world that charge processing fees and service fees, and “you've looked at our website so now we're going to charge you” fees. The Coalition Government did not cover themselves in glory yesterday with this announcement.
And then there was the announcement of the announcement from Brooke van Velden around scaffolding safety requirements. That was another unwelcome reminder of Labour's modus operandi too. No, she was a day to forget for the Government yesterday.
Kerre McIvor, is a journalist, radio presenter, author and columnist. Currently hosts the Kerre Woodham mornings show on Newstalk ZB - where this article was sourced.
Well, no, hang on a minute. My first thought was well, surely the retailers will simply pass on the cost that they have to pay to the banks for the privilege of having debit cards, contactless payments, and credit cards. The bank charges them because the credit card companies charge them, the banks certainly aren't going to absorb it. The retailers say, well, if you want the privilege of contactless payment if you want the convenience of that, then you can pay the charge. But now they're going to have to absorb it.
My second thought was now I'm going to be paying more. I don't Tap and Go. I very seldom Tap and Go. I've got a business account and a personal account, and when I pay for something, I'll insert my card, select the account, and pay that way. It’s supposed to make things easier for the accountant, and I avoid the surcharge. So when the retailers pass on the cost of the surcharge, anyone else who inserts and pins or swipes and pins will be paying too.
Heather du Plessis-Allan covered most of my objections when I was listening to her interview with Scott Simpson last night. How can this possibly be trumpeted as a boon to consumers when all that happens is the price of goods will go up to cover the surcharge? Why not go after the credit card companies? And the banks?
I could certainly understand charging a surcharge in the olden days when we had the zip zap credit card machines. There would undoubtedly have been a cost involved in processing all that paper. But now? Come on. Sure, there are costs in terms of fraud protection and there'd be other costs involved if you want to use your credit card and have that added protection, then you pay the surcharge. I don't see why the retailer should pay it, and I don't see why I should pay it when I'm not using that facility.
Why didn't the Government go after the Ticketmasters, and the Air New Zealands, and the hotels of this world that charge processing fees and service fees, and “you've looked at our website so now we're going to charge you” fees. The Coalition Government did not cover themselves in glory yesterday with this announcement.
And then there was the announcement of the announcement from Brooke van Velden around scaffolding safety requirements. That was another unwelcome reminder of Labour's modus operandi too. No, she was a day to forget for the Government yesterday.
Kerre McIvor, is a journalist, radio presenter, author and columnist. Currently hosts the Kerre Woodham mornings show on Newstalk ZB - where this article was sourced.
3 comments:
Lleyton Smith opened my eyes to the climate fraud. Lleyton researched climate change and interviewed a slew of experts. His accurate conclusion was born of facts and intellect.
Fast forward to the band wagon, shallow, gossip which has overtaken the post 0900 newstalk zb team today.
No research, little understanding, low intellectual rigour, but hey why not throw an "opinion" out there anyway?
Perhaps if the newtalk post 0900 dream team did a bit more research they might discover:
1. The Commerce Commission just reduced interchange fees paid by Kiwi businesses to accept Visa and Mastercard payments.
2. Outlawing transaction fees ensures the reduced interchange fees are passed ro consumers instead of swelling bank coffers.
3. Retailers were adding a nice stipend for themselves into the transaction fee and any reporter with a fundamental understanding of perfect knowledge knows why that is unacceptable.
4. Transaction fees discourage credit card use, elevating the banks dominant position in NZ.
Replacing failed DEI public sector managers with meritorious straight white males should be a new welcome trend adopted by newstalk zb.
Correct Kerre. Prices will just go up. We should start paying in cash and asking for the non- surcharge prices. During the chch quakes (none of which can be predicted by the annoying civil defence phone screeches) the two things you needed were cash and petrol. Electricity was down. If there is no such thing as cash or petrol driven cars, then everyone will be helpless.
This new digital era is ALL about control.
Just like the idiot move to stop power companies giving prompt payment discounts, now we all end up paying more. Like Kerre, we use EFTPOS if a surcharge is looming on the credit card. So, we will now end up paying the same as those using the plastic on credit. How about a few win-win initiatives instead of the lose-lose ones?
Post a Comment