Arabic version: الشركات الصغيرة الإقليمية تواجه ارتفاع التكاليف وتغييرات رسوم البطاقات
According to ABC News, small business owners in rural and regional communities say rising operating costs are putting them under constant pressure, while changes to card payment surcharges are set to take effect from October 1. Businesses will no longer be able to add a surcharge on card payments, prompting some operators to consider cash-only trading or higher prices for certain items.
In Keith, an agricultural town of about 1,400 people on the Dukes Highway between Melbourne and Adelaide, Retail Therapy owner Francene Martin said she made no sales during a Sunday trading day, despite a 50 per cent off sale. Ms Martin, who has operated in the town for 16 years, said she faced constant pressure from major online retailers including Amazon, Temu and Shein.
In Ballarat, Prey cafe operations and social media manager Frazer Wyley said small operators were confronting “insidious cost creep” behind the scenes. He said the expenses built into a cup of coffee included cups, lids, water, wages, superannuation, EFTPOS fees and ingredients, leaving margins of less than 10 cents. Prey is run by father-son duo Eddie and Remi van den Akker and has been open for just under 100 days.
The Reserve Bank of Australia estimates its reforms will save businesses $910 million annually through reduced transaction fees, but business advocates and industry experts have warned that removing credit and debit card surcharges could shift payment-system costs to small businesses. CreditorWatch’s August Business Risk Index found one in eight Australian cafes and restaurants had closed in the past year, while payment defaults rose nationally for a third consecutive month.
CreditorWatch chief economist Ivan Colhoun said small businesses were dealing with changes in e-commerce, rising inflation and higher interest rates. Ms Martin and Mr Wyley called on customers to support local businesses, arguing that regular in-store visits can help keep town centres and community shops operating.
