Credit Card Surcharges, Retailers Opportunity

Credit Card Surcharges Great Opportunity For Retailers

"The prospect of businesses now being able to charge customers a surcharge on credit card transactions will no doubt prove to be a great marketing opportunity for many retailers," predicts the head of Auckland's leading retail district

"Let's not forget that we're in such a price-driven market at the moment. As surcharges on credit cards become more commonplace those retailers not imposing them could have an instant competitive advantage," says Cameron Brewer, chief executive of the Newmarket Business Association.

"What a great way to get one up on your competitor by simply wavering a cost you've never charged for in the first place.

"Not adding a surcharge for credit cards will be no different from current incentives such as interest-free, no deposit, free delivery, complementary gift-wrapping or a cafe not imposing a statutory holiday surcharge. It will become quite a powerful marketing gimmick particularly for the big format retailers."

Mr Brewer also says while it is now retailers' right to charge extra on payments made with credit cards, many will be reluctant to in the current discounting environment.

"Consumers at the moment are so used to striking up a good deal that a surcharge sign on the counter will put many off. Even if customers are happy to pay a surcharge, it will still leave a slightly bitter taste in many people's mouths as the leave the shop. A lot of retailers will be reluctant to scare off their customers. Many will wait until the economy is back in full swing, before they add a surcharge," says Cameron Brewer.

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