American Express is cutting its fees for small businesses in Australia in an effort to double its presence in the country. Currently, small businesses wanting to accept the credit card in the place of business are hit with high fees in comparison to other credit and debit cards. “According to the Reserve Bank, Amex charges average merchant service fees of 1.58 per cent of a transaction’s value, compared with 0.78 per cent for MasterCard and Visa, and 1.8 per for Diners Club.”
Under a new aggressive plan to win business Amex will look to reduce fees and offer pay rates of under 2% by the end of the year. “As part of the plan, the credit card firm has recently signed a deal with the Commonwealth Bank that will allow small businesses to accept Amex for the same price as taking MasterCard or Visa payments, up to a certain amount of turnover.”
The move to compete with other cards in the market is a new one but could having a huge positive result. Whether this brings a new shifting market in the country remains to be seen, but for now small businesses in Australia will be able to accept another credit card at a much cheaper fee, which is always good.