(28 February 2011 – Australia) The latest Australian Merchant Payments report from East & Partners has shown that the incidence of businesses applying surcharges in the non-retail industry group has doubled in the last year.Enterprises in non-retail industry groups applying a surcharge substantially
increased over a one year period, rising from 14.7 percent in December 2009 to
33.4 percent in December 2010.
Meanwhile, businesses in the non-retail industry are also applying significantly
higher surcharges on average per transaction than their retail industry
counter-parts.
From December 2009 to December 2010, non retail enterprises increased their
surcharges on average from 2.3 percent to 4.96 percent, while businesses in the
retail sector actually detracted, falling from 2.4 percent to 2.34 percent.
Across both segments combined, the average surcharge applied by merchants per
transaction is currently 2.55 percent, which is in stark contrast to the average
merchant service fee for Bankcard, MasterCard and Visa of 0.81 percent, American
Express at 1.92 and Diners at 2.12.
Furthermore, the credit card is losing ground to the debit card; merchants have
reported that debit cards now account for 40.5 percent of their overall annual
receivables stream, up from 21.1 percent three years ago, while the credit card
has dropped from 27.1 percent to 22.0 percent.
About East & Partners’ Australian Merchant Payments report
East & Partners’ annual Merchant Payments report provides a deep and unique
insight into key drivers of Australian merchants’ current behaviour and payment
practices. It draws upon East & Partners’ rich data on the payments market which
has been supplemented with further reanalysis and additional primary data
gathering executed directly with merchants. The report provides quality market
analysis across a number of important areas including, the breakdown of
merchants’ receivables, acceptance of payment products, online payments uptake,
merchants’ future product priorities and credit card surcharging behaviour.
All of the figures included in the Australian Merchant Payment report are
derived from direct interviews with Australian merchants, conducted as part of
East & Partners’ ongoing Merchant Acquiring and Cards Markets twice annual
research program.
For more information please contact:
Kimberley Burgess
Marketing and Communications
East & Partners
t: 02-9004 7848
m: 0405 250 796
e: kimberley.b@eastandpartners.com