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Aaroona

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  #3228124 8-May-2024 23:21
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nova:

 

There is quite a bit of irony in that this thread is currently right next to the "Things that were meant to have bought prices down but have not". Since the new regulations were introduced, there seems to have been very little in the way of passthrough to consumer. Instead of going down, retail surcharges have gone up if anything, and have certainly become a lot more widespread. The main impact on the consumer is that credit card reward programs have reduced the rewards. So a double whammy, more surcharges and less rewards.

 

I agree with the OP that 3% is excessive, but maybe the doctor has low turnover and doesn't get good credit card rates. And maybe if you're allowed to pass it on there is less incentive to get a good rate. And GPs have certainly been squeezed financially, to the detriment of the population as a whole. My dentist doesn't charge a credit card surcharge, but they charge a whole lot more than my GP...

 

 

Agreed - its been a bit on both sides as you say, the "rewards" schemes have gotten notably worse, and retailers are still charging the same amount of fees in many cases, or as you said, are more prevalent than ever as an additional charge now. 

 

I definitely think that 3% is excessive. So I have written in to the practice, and they have said they will pass my message onto management to review the fees against actual cost to serve + the legislation and their provider. So we'll see where that goes.

 

 

 

cddt:

 

To avoid the fee, just pay with your EFTPOS card instead. 

 

 

My issue with this is that it's all well and good for those that can afford it, but I know a number of people that do not have that luxury (and yes it feels gross saying that) to just pay cash - and that unfortunately includes visiting the doctor. I can't speak to the money they make at the practice i visit - but I know that my visits have gone from $19.50 up to minimum $60 (for 15 mins), and in some cases much more a 20min consult is $95.

 

It is usually very hard to get an appointment at this branch - They are central CBD, and usually booked out, though after they started charging 3 times (and more) the price, I've noticed availability has come up significantly, which suggests the lack of affordability has drastically reduced the amount of patients able to see a doctor... but their pricing is a separate issue... 

 

 

 

 




Dynamic
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  #3228143 9-May-2024 08:08
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If I earn $50 and spend $50 getting a hair cut, the barber can put that $50 towards a plumbing bill.  The plumber can pay $50 to their kids sports club.  The sports club can pau $50 for equipment.  The equipment supplier can pay $50 to their staff.  This assumes everyone uses cash or EFTPOS or internet banking.  The money keeps circulating.

 

If I pay using a credit card, $48.50 goes to the barber (the original $50 less his 3% fees).  If they pay their plumber with a credit card, only $47(ish) is available to pay their kids sports club with a credit card who then only has $45.50 available for sports equipment.  Yes I know my maths is not quite correct and this is an over-simplification with some exaggeration, but you get the point.  Money is being slowly drained from the local economy and going into the coffers of largely offshore owned banks.  Since this was pointed out to me several months ago, I have made a point of inserting my EFTPOS card.





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Bung
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  #3228148 9-May-2024 08:35
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Aaroona: I definitely think that 3% is excessive. So I have written in to the practice, and they have said they will pass my message onto management to review the fees against actual cost to serve + the legislation and their provider. So we'll see where that goes.

 

My issue with this is that it's all well and good for those that can afford it, but I know a number of people that do not have that luxury (and yes it feels gross saying that) to just pay cash - and that unfortunately includes visiting the doctor. I can't speak to the money they make at the practice i visit - but I know that my visits have gone from $19.50 up to minimum $60 (for 15 mins), and in some cases much more a 20min consult is $95.

 

 

I used to think it depended solely on the surcharge rate charged by Visa or Bankcard but there's a series of different charges. The payment gateway systems and banks all clip the ticket not forgetting that IRD charge gst on the surcharges as well.

 

I know that in the past my dentist normally expected payment on the day but you could stage payments for things like crowns. I suspect now he would offer Afterpay as an option and you'd have the added Afterpay surcharge.




Bung
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  #3228207 9-May-2024 08:54
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Dynamic: Money is being slowly drained from the local economy and going into the coffers of largely offshore owned banks.  Since this was pointed out to me several months ago, I have made a point of inserting my EFTPOS card.

 

I usually do the same but I was talking to a local takeaway coffee shop owner about Paywave and he didn't seem to know or care how much it cost him. That's when I knew that his price more than covered any fees.


bagheera
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  #3228213 9-May-2024 09:32
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Bung:

 

Dynamic: Money is being slowly drained from the local economy and going into the coffers of largely offshore owned banks.  Since this was pointed out to me several months ago, I have made a point of inserting my EFTPOS card.

 

I usually do the same but I was talking to a local takeaway coffee shop owner about Paywave and he didn't seem to know or care how much it cost him. That's when I knew that his price more than covered any fees.

 

 

 

 

I remember working on a project, that looked into the real cost of 4 methods of payment - the most costly was cash, due to needing process to remove cash from the till count it, have someone check it, and get to the bank each day, then CC in person, then it was eftpos, as for both CC & eftpos they had to have to pay someone do the transaction, and the cheapest method was on-line with CC as the server & fees was a lot cheaper than a person, and the person doing all the work to get the transaction done was doing it for free - after that, there was a big drive to get people to pay on-line.

 

 

 

People forget how much cash costs a business in dealing with it.


cddt
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  #3228235 9-May-2024 10:03
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bagheera:

 

I remember working on a project, that looked into the real cost of 4 methods of payment - the most costly was cash, due to needing process to remove cash from the till count it, have someone check it, and get to the bank each day, then CC in person, then it was eftpos, as for both CC & eftpos they had to have to pay someone do the transaction, and the cheapest method was on-line with CC as the server & fees was a lot cheaper than a person, and the person doing all the work to get the transaction done was doing it for free - after that, there was a big drive to get people to pay on-line.

 

 

 

People forget how much cash costs a business in dealing with it.

 

 

Online-eftpos? Now that's a thing. 





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bagheera
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  #3228236 9-May-2024 10:05
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cddt:

 

bagheera:

 

I remember working on a project, that looked into the real cost of 4 methods of payment - the most costly was cash, due to needing process to remove cash from the till count it, have someone check it, and get to the bank each day, then CC in person, then it was eftpos, as for both CC & eftpos they had to have to pay someone do the transaction, and the cheapest method was on-line with CC as the server & fees was a lot cheaper than a person, and the person doing all the work to get the transaction done was doing it for free - after that, there was a big drive to get people to pay on-line.

 

 

 

People forget how much cash costs a business in dealing with it.

 

 

Online-eftpos? Now that's a thing. 

 

 

 

 

this was before it was a thing and not all banks do Online-eftpos yet


mudguard
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  #3228360 9-May-2024 14:33
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bagheera:

 

I remember working on a project, that looked into the real cost of 4 methods of payment - the most costly was cash, due to needing process to remove cash from the till count it, have someone check it, and get to the bank each day

 

People forget how much cash costs a business in dealing with it.

 

 

And I see this from time to time. There was an article recently about someone unable to deposit cash at their local branch/machine or someplace. And all I could think of is how much cash is a PIA to deal with.

 

I know people don't want their spending traced and the apocalypse and all that, but wait until businesses start charging a cash handling fee, which to be honest, I view as no different to a credit card fee. People will lose their minds. 

 

It's not much different to refusing to accept a $100 note for a small transaction. 


cokemaster
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  #3228782 10-May-2024 16:13
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I have a minor concern that full passthrough of credit card fees does remove the incentive of the merchant from seeking the best possible conditions (as they just pass this through). 

I base that on credit card acceptance fees that have progressively gone up with AU merchants (many of them adapting Square/stripe). Whilst some merchants offer cash discounts (as high as 10% which I've nicknamed the ATO special), some have gone cashless and you have no alternative but to pay the price + card acceptance surcharge (even with EFTPOS which is priced differently over here). 





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Aaroona

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  #3234243 24-May-2024 12:37
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An update on the situation here.

 

 

 

The doctors practice has replied and said that they have reviewed the fees with management and they have lowered from 3% to 2%.

 

Definitely an improvement and not completely out of the realms of possibility with other payment providers, however I still think this is on the high side.

 

If I go look up what the banks are offering to take credit card payments as well as POS hire etc., the fees definitely come in below 2%, and certainly when you apply the cost-weighted average, I suspect it would be lower.

 

But, at least its an improvement. 

 

 


freitasm
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  #3394738 17-Jul-2025 08:20
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