ACCC should investigate EFTPOS fees for small businesses, Tyro Payments recommends

SMALL businesses are paying millions more than big companies in fees and the ACCC should investigate, a submission to a federal inquiry recommends.

Small business owners are being charged significantly more for transaction fees, accordin

THE nation's competition watchdog needs to investigate why small businesses are paying millions of dollars more in transaction fees than large companies, a submission to the federal government's financial system inquiry recommends.

Independent EFTPOS provider Tyro Payments believes small and medium sized enterprises (SMEs) are paying $400 million more in fees than big business on debit and credit card interchange fees. It says that on average SMEs are charged 53 cents per transaction on Visa and MasterCard credit and debit cards.

In comparison, big retailers only pay about 16 cents per transaction.

“The Australian Competition and Consumer Commission needs to investigate why Australia's major banks can treat our small and medium sized businesses with such contempt,” Tyro chief executive Jost Stollman said in a statement on Monday.

He said the financial system inquiry was a one-off opportunity to bring Australia up to a competitive international level when it comes to encouraging innovation, productivity and healthy market competition.