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And some Australian retailers charge extra for specific cards with higher fees (eg JB Hi-Fi stores have a surcharge for using AmEx or Diners Club cards, which t
by SyneRyder 10y ago
And some Australian retailers charge extra for specific cards with higher fees (eg JB Hi-Fi stores have a surcharge for using AmEx or Diners Club cards, which typically charge the merchant more than Visa or Mastercard do).
I was going to link to The Good Guys and their "Pay Cash Pay Less" marketing, but it appears they scrapped their cash discount after finding customers increasingly prefer to use electronic payments:
http://www.smh.com.au/business/the-good-guys-scraps-cash-discounts-as-consumers-go-digital-20150716-gidha2.html http://www.smh.com.au/business/the-good-guys-scraps-cash-dis...
- dTal 10y ago>scrapped their cash discount after finding customers increasingly prefer to use electronic payments That's a weird reason. Surely that's the whole point of the discount? If customers preferred paying cash, then no discount would be required.
- ma2rten 10y agoI think s/he means they preferred to pay cash despite the discount.
- SyneRyder 10y agoNo, customers prefer to pay electronically. The linked article points out that cash sales in Australia have crashed from 70% to just 47% and is on a fast decline. I think the point of removing the cash discount is they can use the 'extra' 3% margin earned on those remaining cash sales to subsidize lowering their price via credit card to be more competitive. Their business is based on offering the lowest prices, but the cheapest price was cash only. The discount for cash no longer lures customers to come to their stores, so there's no incentive for the store to continue passing on the discount to the customer.
- ma2rten 10y agoNo, customers prefer to pay electronically. That's what I meant.