Hospitality industry urged to say NO to surcharging from September 1
Surcharge Free movement calls for others to join in putting customers first
Surcharge Free, a collective of Australian businesses has called for hospitality operators across the country to scrap payment surcharges once and for all.
“September 1 is a red letter day for surcharging in Australia – it’s when the new Competition and Consumer Amendment (Payment Surcharges) Act 2016, designed to curb excessive surcharges, comes into effect for large businesses[1],” said consumer advocate and Surcharge Free spokesman Christopher Zinn.
“While we’re all for anti-gouging measures, the new legislation doesn’t go far enough. Payment surcharges are not a cost passed on to customers in many other parts of the world, so why should Australians be expected to pay them?” asked Zinn.
“Surcharging flies in the face of good customer service, which is the lynchpin of any successful restaurant, café or bar. Increasing competition in the dining industry means business survival is more than ever dependent on repeat business and positive referrals.
“Put yourself in your customer’s shoes. Imagine you have just enjoyed a great night out, great food and wine and exceptional customer service. Then on settling the bill, you get pinged with a surcharge for paying with a card, it’s enough to leave a bitter taste in anyone’s mouth,” said Zinn.
“Hours of great customer service is undermined by one simple transaction.”
Research[2] shows that Australian customers resent being charged extra simply because of how they’ve decided to pay. Key insights show:
- 90 per cent of hospitality customers have a negative attitude to being surcharged;
- 1 in 5 restaurant consumers have complained about a payment surcharge on the spot; and
- 1 in 4 will not return to a restaurant once they’ve been surcharged.
“Come September 1, we’re calling on the hospitality industry across Australia to join the Surcharge Free movement and focus on the goodwill not surcharging creates with customers. Ask yourselves – why would you put your return business at risk?”
Zinn also sounded a warning to the Industry not to be tempted to use September 1 as a rationale to start surcharging.
“Australian customers are savvy and will likely respond to new charges with cynicism. Customers couldn't be clearer – surcharging is an unwelcome sting in the tail of any purchase.”
"September 1 is the perfect time to do your customers a favour and stop passing on a surcharge. We're calling on businesses of all types to join us in saying ‘no’ and giving customers what they want.”
The use of cards over cash is increasing[3], encouraged by the emergence of new payment technologies like mobile wallets. Smart businesses are respecting their customers’ choice in how they want to pay.
“Research is telling us that the cost of accepting card payments is reducing for businesses over time[4], so it just makes sense to provide your customers with the best possible customer service.” said Zinn.
The first of September is the perfect time to join the Surcharge Free movement and a fantastic opportunity to have your company logo listed on the Surcharge Free website. Pledge and promote your business at www.surchargefree.com.au and download free ‘Proudly Surcharge Free’ point of sale material to display to customers.
Source: Surcharge Free, 2nd September2016
