What's with Credit Cards?

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Forums › Finance and wealth management › What's with Credit Cards?

networkn

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#89335 31-Aug-2011 09:57

Anyone else noticed that lately it seems like next to no-one takes credit cards any more? I am not sure why all of a sudden retailers are refusing to take it. I used to live off my credit card and clear the entire balance each month which meant I got loads of airpoints. I don't think the fee's have increased lately, in fact now retailers can actually pass those costs on.

At this rate Credit Cards won't last the decade! At least half the retailers I regularly deal with have stopped.

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#514263 31-Aug-2011 10:03

It's even moreso in Aussie. In fact, many places in Australia (apart from large retailers of course) won't even take EFTPOS, let alone credit cards.

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networkn

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#514268 31-Aug-2011 10:12

Which parts of Australia?

ajobbins

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#514273 31-Aug-2011 10:15

I used mine as much as possible in place of EFTPOS, and haven't noticed any decline in acceptance. If anything, more places around Auckland are happy to take CC than I found when I was living in Wellington.

Many do have either a minimum spend, or a CC surcharge however.

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SandyJ

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#514277 31-Aug-2011 10:18

I just use my debit card for everything now... makes life simple and hassle free. :)

chiefie

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#514280 31-Aug-2011 10:21

Aussie retails don't like EFTPOS... it's real weird...

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#514282 31-Aug-2011 10:21

ajobbins: I used mine as much as possible in place of EFTPOS, and haven't noticed any decline in acceptance. If anything, more places around Auckland are happy to take CC than I found when I was living in Wellington.

Many do have either a minimum spend, or a CC surcharge however.

My experience is the same - lots of take aways and dairies don't accept them but almost everywhere else seems to, with no surcharge

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#514284 31-Aug-2011 10:23

I've noticed an increase in CC acceptance if anything , although, a CC 'convenience' fee is becoming more common.

I like McDonalds idea, no need to enter a pin on CC transactions under a low limit.

CC is great, I know it will always be accepted so long as I pay the full balance each month. I manage the cheque account carefully so it always has a low balance meaning I avoid using it where possible.

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ajobbins

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#514285 31-Aug-2011 10:24

chiefie: Aussie retails don't like EFTPOS... it's real weird...

I think it's to do with the current fee structure. Unlike NZ, where retailers (As I understand) just pay a service and rental fee, AU retailers pay a transaction fee, making it uneconomic for them for small purchases.

I believe there is currently a campaign running in AU to change this and get more people using EFTPOS, especially for small purchases.

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#514318 31-Aug-2011 11:00

Hmm In Newmarket, Auckland I've actually noticed a few places who used to only take eftpos now take credit cards too. I presume it is related to them getting new terminals (and deals) from providers for micro chip cards.

Also ajobbins is bang on, eftpos is widespread here because retailers just pay a rental not transaction fees.

I read a good article/blog post on the history of eftpos in nz recently but can't for the life of me remember what site it was on.

networkn

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#514319 31-Aug-2011 11:05

I suspect also because Newmarket retailers can expect reasonable traffic due to RWC and most international travellers will use CC's.

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#514325 31-Aug-2011 11:12

chiefie: Aussie retails don't like EFTPOS... it's real weird...

You notice that there arent so many 'bank' hole in the wall machines in Aus.
The cash machines are usually in the corner of a pub or convenience store.
They want you to get cash out of that and use the cash in the shop. PITA.

I actually like NZs pretty universal love of EFTPOS.

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#514339 31-Aug-2011 11:26

ajobbins:
chiefie: Aussie retails don't like EFTPOS... it's real weird...

I think it's to do with the current fee structure. Unlike NZ, where retailers (As I understand) just pay a service and rental fee, AU retailers pay a transaction fee, making it uneconomic for them for small purchases.

I believe there is currently a campaign running in AU to change this and get more people using EFTPOS, especially for small purchases.

That's the exact reason..
You pretty much have never been able to EFTPOS anything under $10 (most places used to be $20)
Transaction fees used to be astronomical.

kingjj

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#514343 31-Aug-2011 11:29

ajobbins:
chiefie: Aussie retails don't like EFTPOS... it's real weird...

I think it's to do with the current fee structure. Unlike NZ, where retailers (As I understand) just pay a service and rental fee, AU retailers pay a transaction fee, making it uneconomic for them for small purchases.

I remember back if my High School Days the local chippie put a minimum on their EFTPOS transactions of $3. Reason being my friends and I who would EFTPOS $1 worth of chips, with each transaction costing them 50 cents at the time. To this day the owner's still mention it when I run into them out and about

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#514346 31-Aug-2011 11:32

As ajobbins says heres the difference:
For EFTPOS in NZ retailers pay a service fee, they don't pay per transaction.
For CC they pay per transaction which means they loose a small % off each sale.

The rental fee is usually associated with renting the Terminal itself, although some may own them outright.

I've found it's usually food outlets and dairies who don't take CC, probably because the value of their transactions are generally lower. Whereas those selling higher value items or with a larger volume of transaction, take both CC and EFTPOS.

Of course if you put a lot of transactions thru the system the costs are more 'negotiable' which is why fastfood chains (and petrol stations) will take your CC for a small amounts.

Having said all that some stores do have a signs up indicating there is a minimum amount for CC transactions.

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#514353 31-Aug-2011 11:39

networkn: Which parts of Australia?

Everywhere. You find that people in Australia use a lot more cash than in NZ.

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