Westpac has lowered its merchant fee, which is expected to lead to cost savings for over 10,000 small and medium businesses and make contactless transactions more accessible to customers.
On September 01, Westpac would move most businesses to a new “blended” merchant service fee that would provide separated pricing depending on the transaction type.
Under the pricing structure, merchants would be charged a new maximum rate of 0.60% on contactless debit transactions, while contactless credit transactions would cost less than standard credit transactions.
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Karen Silk, the general manager for Westpac NZ customer experience hub, said the bank decided to “deliver fair and transparent pricing” upon listening to the feedback of its small business customers.
“The new fees better reflect the costs associated with processing the different card and transaction types and will lead to real savings for many businesses, in particular smaller businesses where transaction volumes are lower and as a result costs have been traditionally higher,” Silk said.
“We also know there has been increased public demand for contactless debit transactions for health and hygiene reasons since the Covid-19 outbreak. Our new changes make contactless sales more accessible to merchants, which is great for them and great for their customers.”