Small businesses will save millions with lower merchant prices
“The overwhelming feedback from our small business customers is that they want simple competitive pricing without the hassle. They want lower cost routing without having to manage the routing themselves, ”said Fowle.
“Our new flat rate pricing is designed to deliver that by removing complex pricing structures and managing transaction routing for them. We will automatically and centrally route transactions in the most cost effective and competitive way, saving businesses a lot of time and money.
Simplifying the process even further, this low cost rate will become the default rate and qualifying small businesses will automatically receive the reduced single rate from October 2021 without the need to “sign up” or apply.
“We take the guesswork out of small businesses that don’t have the time to individually assess and compare the costs associated with different programs. Flat rate rates also provide our customers with an easy way to recover costs by charging a single rate, ”said Mr. Fowle.
To provide an additional injection of cash as Christmas approaches, the CBA will automatically waive three months of merchant fees for small businesses that have been hit hardest by the latest COVID lockdowns. This equates to over $ 7 million in the pockets of merchant customers.
“Starting next week, we’ll let more than 50,000 customers know that we’re automatically waiving their standard merchant fees for three months, September through November. That translates to roughly $ 7 million in their pockets before Christmas, ”Mr. Fowle said.
The ABC said an additional $ 3 million has been reimbursed to financially struggling traders since the start of the pandemic. Any merchant customer experiencing financial difficulty can contact CBA for a refund on a variety of fees applicable up to 90 days.
Today’s announcement complements the recent release of StepPay, another ABC initiative that supports Australian small businesses. While traditional Buy Now, Pay Later (BNPL) products charge merchants a fee of up to seven percent, StepPay only charges merchants a credit card transaction processing fee that is significantly lower than retailers. traditional BNPL products. Additionally, merchants do not need to incur integration costs or experience interruptions with their point-of-sale systems and online payments, as StepPay is treated the same as credit card transactions. credit are processed today. This puts savings back into the pockets of small businesses and helps level the playing field by allowing them to better compete with those who are able to pay higher BNPL costs.
As the ABC has done throughout the COVID pandemic, we will continue to look for ways to support our small business clients to help them recover as the lockdowns are lifted and they reopen.
* Eligible CBA small businesses with sales of $ 250,000 or less will have the new simple rates applied automatically from October 2021.