The Economy, Stupid
Each time you tap, you pay a little extra, and it all adds up
Sep 26, 2024
Brad Kelly, Managing Director of a consulting company, dives into Australia's shift to card payments, which now dominate over 90% of transactions. He reveals how each tap adds hidden costs, piling up to billions annually. Kelly discusses the Reserve Bank's push for lower fees through 'least cost routing,' aiming to ease the burden on small businesses. He also highlights the scrutiny on Coles and Woolworths for misleading pricing claims, as well as upcoming regulations designed to protect consumers and enhance transparency in retail pricing.
29:06
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Quick takeaways
- The rise of cashless payment systems in Australia has led to significant hidden costs for consumers, exacerbated by high merchant fees for small businesses.
- Legal action against Coles and Woolworths highlights the critical need for transparency in pricing practices and consumer protection in the grocery sector.
Deep dives
Supermarkets Under Legal Scrutiny
Woolworths and Coles are facing legal action for allegedly misleading consumers regarding product pricing. The Australian Competition and Consumer Commission (ACCC) claims that these supermarkets promoted discounts that were misleading, as some prices were higher than advertised. This inquiry highlights an ongoing issue of consumer protection within the grocery sector, where transparency in pricing practices is crucial. The outcome of this case could set a precedent for how discounts are presented to consumers in Australia.
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