OPAL’s new service fee will leave small business high and dry

OPAL top up points could soon disappear from small businesses across the state. Find out why here.

A newsagent in The Hills tops up a new opal card. Picture: Jake McCallum

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Small businesses offering OPAL card top up points to commuters have now been slugged with a monthly fee that makes providing the service “completely unprofitable”.

Newsagencies, post offices, petrol stations and convenience stores were notified in November that they would now be charged a $12.10 service fee every month.

Bus commuters like Hanna O'Grady could be left without top up points if small business don’t provide the service. AAP IMAGE / Troy Snook)

But family-run small businesses have hit out at the decision because they believe it is discouraging businesses from providing top up services.

Wallsend state Labor MP Sonia Hornery is calling on Transport Minister Andrew Constance to scrap the service fee.

“Retailers can no longer afford the fees and charges and have removed the machines from service,” Ms Hornery told NewsLocal.

“Newsagents are telling me providing this service is costing them more money than it makes.

State MP for Wallsend, Sonia Hornery. Picture: Facebook

Minister for Transport and Infrastructure Andrew Constance. (AAP Image/Dean Lewins)

“It makes it difficult for people to access public transport if these services aren’t provided — particularly communities that rely on bus services.”

Ms Hornery said businesses should receive incentives for providing the service.

Parramatta CBD Newsagency owner, William, agreed with the MPs’ calls to scrap the fees.

“The government is charging us a monthly fee to provide a service to its own commuters,” he said.

“The margin on sales was already very slim when it comes to profit from OPAL top up, so this is a tipping point for many businesses.”

OPAL card top up points like this one could soon disappear from small businesses. Picture: Jake McCallum

The small business owner said he is also hit with credit card fees on the service.

“These fees keep growing and we can’t afford to provide the service,” he said.

“Retailers aren’t making enough profit to even cover that monthly service fee.”

Commuters could be forced to rely on train station top up points. Picture: Jenny Evans

Almost 2000 retailers across the state offer OPAL card top up points to commuters.

The Opal Retail Network is managed through commercial agreements between retailers and Epay Australia.

Transport for NSW was contacted for comment.