Shoppers not keen on card surcharges

Retailers have received a clear message that shoppers would rather leave their favourite store than pay a credit card surcharge.

A survey commissioned by public relations agency Impact PR investigated the habits of consumers and their perceptions of having to pay additional credit card surcharges.

The research showed that 90% of customers would stop shopping at their regular store if a 3% credit card surcharge was added to their purchase.

Impact PR managing director Fleur Revell said some merchants began introducing the surcharges freely two years ago after credit card companies removed restrictions.

But according to the new research, there was increasing resentment among customers to the surcharges, she said.

"The study sounds a warning to businesses about imposing and also failing to communicate additional charges at the point of purchase."

The survey found that 88% of respondents believed retailers adding a credit card surcharge were not adequately communicating enough information about the fee to their customers.

Inadequate communication, leading to "surprises" at the till, was bound to produce some extreme reaction in customers which many businesses would have already experienced, Ms Revell said.

The key to minimising the customer reaction was to ensure customers knew as soon as possible in the transaction process that a surcharge existed and the rationale behind it.

Mark Devlin, owner of shopping website Showroom.co.nz, said retailers who added the credit card surcharge were short-sighted.

"What we may lose in margin we definitely make up in customer satisfaction and repeat purchase."

 

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