Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Communication of Credit Card Surcharges Under Scrutiny


Communication of Credit Card Surcharges Under Scrutiny

Credit card surcharges are once again in the spotlight with a new Government study of 3000 retailers underway to determine the scale of the issue.

The study comes on the back of nationwide research by Auckland PR firm Impact PR which found that nine out of ten Kiwis would move suppliers if their regular store introduced a surcharge of 3% and that most consumers felt surcharges were poorly communicated to them.

Impact PR's Mark Devlin says the businesses coming under the most scrutiny are those where the flat rate surcharge exceeds 3%. These include airlines and council run parking meters where additional charges could be in the region of 10-25%.

Devlin says that their research shows it was not just the surcharge itself that was likely to bring ramifications for the merchant, but how transparently it was communicated.

"We found that 88% of Kiwis believed that credit card surcharges are not made clear to them prior to purchase," says Devlin.

"Kiwi shoppers are not used to getting surprises when we make a payment. Unlike many overseas markets where sales tax may be added at the point of purchase, our legislation has long upheld that GST must be included in the price quoted on the shelf and we have an inherent expectation of no surprises," he says.

Devlin says often the surcharge "fine print" is so small it's hard to spot or worse, not displayed at all. There is also often a noticeable variance in the amount of the surcharge depending on the store and what type of credit card was used, he says.

"As significant an issue this is for us as local shoppers, it has also broader repercussions for our international reputation with tourists. The last thing New Zealand needs from a brand image perspective is to develop a reputation for adding unexpected charges which could be seen as covert or exploitative of visitors."

Devlin says since the introduction of credit card surcharges in the USA in just weeks ago, ten states including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas have so far introduced legislation to ban them - and 11 more are expected to follow.

"New Zealanders need to consider whether regulation on how surcharges are communicated is required - this will once again ensure a degree of certainty at the point of purchase for both New Zealanders and visitors to this country," he says.

"Consumers should not have to hunt near the till for details of a possible surcharge when they enter a store, at the very least it should be displayed clearly on the shelf under the item," says Devlin.

For more information on the Impact PR survey visit www.impactpr.co.nz

-Ends-

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news