Retailer happy with Paywave reactions

A Wellington retailer who ditched contactless payments because the fees were too high says he has received support from customers and other small business owners.

‘‘Most people have been supportive of the stance I’ve taken, my customers particularly,’’ David Cathro said.

Banks charge businesses contactless payment transaction fees every time.

As part of the Covid-19 recovery, most banks waived the fees, and the minimum monthly merchant service fee, for eligible small business customers for a limited time.

Cathro, who owns Made Marion Craft, estimated the business paid $8000 a year in Paywave fees – about 2 per cent of every transaction.

So when the fees were reintroduced on January 1, he decided to remove the contactless payment option altogether.

‘‘We’re a small business, we’re trying to compete with big box stores and the internet. It’s a real juggling act trying to stay afloat in retail.

‘‘People don’t realise that it costs us,’’ he said.

‘‘But we’re also getting a lot of people who are in the know and deliberately do not use their pay wave at small businesses.’’

On Tuesday, a Westpac spokesman encouraged businesses facing financial difficulties to contact the bank to discuss possible options.

An ANZ spokeswoman said it was not aware of any complaints regarding contactless payment fees.

The Government has introduced the Retail Payment System Bill, which would regulate credit and debit cards fees charged by banks.

A holidaying Commerce and Consumer Affairs Minister David Clark was unavailable to comment on the progress of the bill yesterday, but it was expected to pass later in the year.