It feels like there is more acceptance of a fee for paying by card than there was a few years our so ago.
I suspect wider use of fees and the ACCC led controls on the value of a surcharge that can be applied are key reasons for this.
In our channel with low margins for newspapers, magazines, lottery products and agency lines more broadly, there is little capacity for the retailer to cover the cost. A surcharge can make accepting a card as a method of payment for viable.
Newsagents playing significantly outside the old agency space are under less pressure, especially if their product GP is north of 50%.
A surcharge also eliminates the minimum spend requirement.
The biggest challenge we have is that shoppers see us as all the same, meaning as more newsagents run with surcharges the more shoppers will expect we all do.
I’m not sitting here writing for newsagents to impose a surcharge. Personally, I don’t like them and don’t want them in my own shops. This post is an acknowledgement off the growing application of surcharges and what feels like less pushback from shoppers.
The key, like anything is business, is good communication, a narrative people understand and believe.
If you do do it, use your tech well to streamline the process and provide transparency to shoppers.
We have never applied the surcharge in our store as for fear of turning customers away.
However with the amount of smaller retail and food and beverage outlets which apply it and people don’t appear to question it, that maybe we may join them also.
Definitely in the consideration basket.