Over half of all businesses don’t know what it costs them to accept credit cards, according to research, an issue being addressed by newly launched Visa program that aims to make SMBs aware of how they can cut costs by reviewing their credit card acceptance practices.
Independent research found 54 percent of merchants don’t know how much they pay in credit card fees, figures Visa Australia country manager Vipin Kalra finds surprising given the current economic environment.
“In these tough times, it’s crucial for businesses to be aware of the facts and understand the options available to them,” he said.
“Research shows 89 percent of Australia merchants consider faster payment and lower costs as the most important benefits of accepting credit cards, yet many are paying higher fees than they need to,” he added.
To better educate merchants on how they can reduce the cost of doing business, Visa has launched the Visa Better Value campaign, which delivers case studies from a range of leading retailers and other communications to merchants via a website, trade advertising and trade shows.
Visa has also developed an online fee saver tool, which allows merchants to calculate potential cost savings available to them by changing credit card acceptance policies.
According to Kalra, Reserve Bank data shows the average merchant fees on American Express transactions are more than double those of Visa.
“The research confirmed that one in three businesses feel their business is suffering to fund these higher fees, so this campaign is designed to provide facts, information and advice from other businesses on how to get the best value from their credit card acceptance programs,” he added.
