AMEX not accepted or surcharge

[daft009]

The local childcare uses Debit Success for automated payment, same 4.4% surcharge for Amex

I ended up asking for special permission to do EFT straight into their account then used EBP and a high earning visa

 

[Mr_Orange]

The local childcare uses Debit Success for automated payment, same 4.4% surcharge for Amex

That level of surcharge must be illegal now.

All these direct debit companies are the same though.

 

[daft009]

i actually talked to the owner about this in length and she was very open I must admit.

the childcare systems are so integrated together, attendance, payment, govt benefits & others that its hard for them to change to another provider just for the direct debit.
yes it probably saves them having a part/full time bookkeeping person so they could wear the costs but i guess they are already pretty lean so i now understand why they are passing it on

anyway I was happy she bent the rules for me a little and accepted EBP on invoice

 

[Mr_Orange]

i actually talked to the owner about this in length and she was very open I must admit.

the childcare systems are so integrated together, attendance, payment, govt benefits & others that its hard for them to change to another provider just for the direct debit.
yes it probably saves them having a part/full time bookkeeping person so they could wear the costs but i guess they are already pretty lean so i now understand why they are passing it on

anyway I was happy she bent the rules for me a little and accepted EBP on invoice

It isn't just childcare centres though. Gyms are another user of these 3rd party direct debit companies. They advertise, say $15pw, for membership but it turns into more like $17.50pw by the time you add on all the DD associated fees. The gyms want their customers to use DD, in fact they enforce it, so they should wear the costs.

Which brings me to another question, why don't the banks offer DD services as per other developed countries?

 

[Chicken]

Which brings me to another question, why don't the banks offer DD services as per other developed countries?

They do.

NAB direct debit
Suncorp Metway EasyPay Debit

However, having had my own business, I had to spend time to shop around and bargain with the banks in order to have competitive merchant fees. As you know, financial literacy in Australia is very low, plus other constrains with running a small business, most business owners simply get a 'packaged deal' and do not investigate what other options are available out there.

As an example, when I had a EFTPOS facility, Suncorp and Tyro and NAB were the cheapest. Yet, walk around the street and you see most shops use CBA and ANZ and lesser degree WBC EFTPOS.

 

[Mr_Orange]

They do.

NAB direct debit
Suncorp Metway EasyPay Debit

However, having had my own business, I had to spend time to shop around and bargain with the banks in order to have competitive merchant fees. As you know, financial literacy in Australia is very low, plus other constrains with running a small business, most business owners simply get a 'packaged deal' and do not investigate what other options are available out there.

As an example, when I had a EFTPOS facility, Suncorp and Tyro and NAB were the cheapest. Yet, walk around the street and you see most shops use CBA and ANZ and lesser degree WBC EFTPOS.

OK, thank you. I still find it hard to believe how these other DD companies exist and survive given how much they rip off the customer (as in us, not their actual customers).

DD are free in the UK for the person being debited.

 

[Chicken]

OK, thank you. I still find it hard to believe how these other DD companies exist and survive given how much they rip off the customer (as in us, not their actual customers).

These companies don't just offer a direct debit service. They plug into industry specific accounting software, so they just get used automatically. The owner of the business thinks cool, one package does accounting and accounts receivable, saves time, awesome. This gives the opportunity for the payment company to make money from you, the payer.

This problem became quite bad with property agents using payment companies which charged a lot for paying rent, to the stage where state governments had to intervene specifically (example for NSW)

It's the same idea as why could PayPal charge such high commission, it's because eBay forces everyone to use PayPal.

 

[carls888]

Ouch. I just bought a ticket on Air North and they charged a 3.3% Amex fee v 1.1% Visa. If the devaluation wasn't happening I'd have paid by Visa...

 

[Pcoder]

Amex now accepted at IKEA. Just used at IKEA Canberra.

No surcharge.

 

[albyd]

Wow thought I’d never see the day. Next, Aldi willl take Amex.

 

[daft009]

Wow thought I’d never see the day. Next, Aldi willl take Amex.

That would be awesome

 

[Mr_Orange]

Wow thought I’d never see the day. Next, Aldi willl take Amex.

You're funny!

That would be awesome

It would.

 

[Mr_Orange]

Amex now accepted at IKEA. Just used at IKEA Canberra.

No surcharge.

It is, you're right. Mrs_O used an Amex at Ikea last time she went but it didn't trigger with me that it was a new thing.