This survey examined payment acceptance practices among retail businesses, focusing on the types of payment methods accepted and merchant attitudes toward surcharging policies.
Overview:
- EFTPOS remains the most universally accepted payment method at 99.02% of businesses, followed closely by credit cards via insert/swipe (Visa/Mastercard) at 98.04%.
- Contactless payments have achieved near-universal adoption with 96.08% of businesses accepting credit/debit card contactless or paywave payments, matching the same percentage that still accept cash.
- Debit card acceptance is widespread at 95.10% of businesses, while alternative credit cards like American Express have lower acceptance at 55.88%.
- International tourist cards present a gap in payment acceptance, with only 62.75% of businesses accepting international debit cards from overseas institutions.
- Cash maintains strong presence despite digital payment growth, with 96.08% of businesses still accepting cash payments.
- Merchant service fees significantly influence surcharging decisions, with businesses indicating they would consider lowering or removing surcharges if fees were reduced to less than 1%.
- Alternative payment methods remain niche with only 11.76% of businesses accepting other forms of payment beyond the standard card and cash options.
MEMBER FEEDBACK:
“Merchant fees are absurdly frustrating. We have no choice but to accept credit cards as payments. Customers who use premium credit cards think they are being fiscally responsible because they get rewards, structure their finances well, or whatever reason they use the card. But they are totally unaware that small businesses are paying a cost for their convenience.”
“I have too much resistance as it is without adding a surcharge. The older population in the area don’t trust electronic banking. We absorb the fees and would like to see them lowered.”
“I think it’s ridiculous that retailers can’t manage this cost and absorb it. I get a lot of feedback from customers about how much it makes them annoyed to pay a surcharge. Especially is hospitality, you can build it into your pricing.”
Download the Retail Payments and Fees survey – August 2024
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