Surcharging small retailers miss the big picture, Paymentsense
A month away from a UK ban, many small businesses and retailers are yet to drop card processing surcharges, according to research from Paymentsense. Its study of 1,029 consumers reveals that 42% are still faced with surcharges at the small businesses, independent shops and food outlets they regularly visit.
31% of shoppers in London said they'd noticed small retailers and outlets have made a change. This figure was even lower elsewhere – 22% in Manchester, 21% in Birmingham, and only 15% in Bristol. Nationally, 37% have been walking out when faced with a card surcharge, since the ban was announced. This figure was even higher for those in London (41%). According to the study, average card spend in small business nationally is £135 a month. This means since the ban was announced, surcharging SMEs have missed out on a share of around £10 billion in consumer spend. A quarter of shoppers would also not come back to a store sticking with old ways. This was even higher in Manchester (30%).
Guy Moreve, Head of Marketing at Paymentsense, says: “We believe the upcoming change will help small businesses as well as consumers. Shoppers previously affected by a potential surcharge are likely to see a saving of between two and three percent per card transaction. Our study also highlighted that SMEs across the country have lost revenue and customers by maintaining card surcharges, after the ban was widely announced. However, after 13th January, everybody will know where they stand, and the days of surcharge-related walkouts will be gone. This can only be a good thing for the UK’s small businesses.”