Shoppers Resent Credit Card Charge - Survey

Published: Mon 9 Apr 2012 10:22 AM
Media release April 9, 2012
Shoppers Resent Credit Card Charge - Survey
Kiwi shoppers are voting with their feet as many say they'd rather leave their favourite store than pay a credit card surcharge according to a new retail survey*.
The survey, commissioned by public relations agency Impact PR, investigated the habits of Kiwi consumers and their perceptions of having to pay additional credit card surcharges.
The research showed the vast majority (90%) of customers would stop shopping at their regular store if a 3% credit card surcharge was added to their purchase.
Some merchants began introducing the surcharges freely two years ago after credit card companies removed existing restrictions.
But according to the new research there is increasing resentment among customers to the surcharges imposed on those paying by credit card, with nine out of ten Kiwi respondents saying they would shop elsewhere.
Impact PR managing director Fleur Revell says the study sounds a warning to businesses about imposing and also failing to communicate additional charges at the point of purchase.
The Impact PR survey found that almost 9 out of ten (88%) respondents believed retailers adding a credit card surcharge are not adequately communicating enough information about the fee to their customers.
Revell says that inadequate communication leading to 'surprises' at the till is bound to produce some extreme reaction in customers which many businesses will already have experienced.
"The key to minimising this is to ensure customers know as soon as possible in the transaction process that a surcharge exists and the rationale behind it," she says.
Mark Devlin, owner of shopping website, says retailers who add the credit card surcharge are short-sighted.
He says his New Zealand customers have no additional charges of any kind, whether it's for payment by credit card or freight.
"What we may lose in margin we definitely make up for in customer satisfaction and repeat purchase. We wanted to create a 'no surprises' shopping environment where customers could feel confident purchasing a product without having gone through the whole process only to have charges added on the final screen."
Devlin says he understands Kiwi's reluctance to take on additional charges and consumers disdain for additional credit card charges has been mirrored in other markets.
He cites a similar study in Canada which found the introduction of a 3% surcharge would encourage 95% of credit card shoppers to switch stores.

Next in Business, Science, and Tech

Australian bushfires continue to blaze – Expert Reaction
By: Science Media Centre
Higher retail consumption lifts GDP
By: Statistics New Zealand
Fairer pay with minimum wage rise for quarter of a million
By: New Zealand Government
Tourism and Environment: Pristine, popular... imperilled?
By: Parliamentary Commissioner For The Environment
Gordon Campbell on the Aussie bush fires and Suleimani
By: Gordon Campbell
Bushfire Crisis: Climate Politics Turning Point Aus Needs?
By: The Conversation
Scott Morrison: the bushfires demand a climate policy reboot
By: The Conversation
Incendiary Extinctions: Australian Fires
By: Binoy Kampmark
Aussie bushfire smoke reaches NZ – update 2nd Jan 2020
2019 NZ's fourth warmest year on record - Expert Reaction
By: Science Media Centre
2019 second hottest year on record, UN confirms
By: UN News
Fossil Fuel Companies Called On To Foot Australia Fires Bill
By: Eoin Higgins
GDP growth reflects a strong economy
By: New Zealand Government
NZ in ‘GDP per person recession’ under Labour
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media