<< Introducing a Credit Surcharge feature will INCREASE MERCHANTS profits by 10% to 50% >>
The average credit card fee is 1.5% to 2.0% (and can be as much as 8% with BNPL). The average ecommerce net profit margin is 5% to 20%. For simplicity, let's assume Aussie merchants are paying 1.5% in credit card fees and their net profit margin is 10%. All other things being equal, allowing Shopify merchants to pass on the credit card costs through a Credit Card Surcharge feature will increase net profit margins from 10% to 11.5%. Or put another way, their net profit will increase by 15%. That would be a substantial and real uplift for Shopify merchants. (The profit uplift could be as much as 80% for merchants currently using BNPL!)
So many other Australian retailers (both online and offline) have credit card surcharges, so consumers are generally happy to pay them. Introducing a credit card surcharge may lead to an increase in abandonments, or may not, but shouldn't that be up to the merchant to decide?
So Community Team - please - take this to Product Development Team and explain that introducing a Credit Card Surcharge feature in Australia (and perhaps other countries) will INCREASE your merchants' profits. It'll make them even happier, fewer will go out of business and Shopify will be lauded in the streets by Aussie online shoplify businesses when this is released! (And the Exec Team will look like heroes too!).
Please make this the #1 feature request.
Some source documents for you:
"Businesses can charge a surcharge for paying by card, but the surcharge must not be more than what it costs the business to use that payment type."
Australian Competition and Consumer Commission (ACCC)
@twobob thanks for your post. Very informative. The banks here in NZ have reduced their credit card fees and yet Shopify has decided to increase theirs from 2.7% to 2.9%. There has been no response on this topic despite a lot of chat in these forums....really disappointing.