5 February, 2020:
The Australasian Association of Convenience Stores (AACS) has lent its support to calls for the Reserve Bank to mandate least-cost routing for all merchants so businesses including convenience calls can direct tap-and-go payments to the domestic Eftpos system, instead of the more expensive international credit card networks.
In its submission to the Reserve Bank’s Review of Retail Payments Regulation, the AACS highlights the potential for convenience stores to save thousands each year by having the ability to route all tap-and-go transactions through low cost domestic networks.
“More profitable stores mean greater employment opportunities, especially at the local community level,” said AACS CEO Jeff Rogut.
“In this challenging time for retail and small business generally, it’s critical for small business to minimise their costs of doing business and this includes minimising what they’re charged by their banks for providing tap-and-go payment options for their customers.
“Convenience stores, above all else, are known for providing a convenient service to customers. They should not be subject to unnecessary imposts when cheaper options exist.
“Ensuring least-cost routing is available to all merchants helps alleviate cost pressure on retailers which by extension is reflected in lower prices for consumers.
“We want to ensure that any move by the banks to make least-cost routing available to retailers includes all retailers, small and large. We are moving towards a cashless economy and it’s vital that transaction fees are kept as low as possible.
“We think there’s an opportunity for regulation stipulating that the processing of all debit transactions initiated in Australia must be done through a designated Australian-based payments system like Eftpos,” Mr Rogut said.
Chief Executive Officer
Australasian Association of Convenience Stores
Ph: +61 467 873 789