Businesses introduce new fees for American Express card payments

• Major Australian companies have introduced a supplier trade fee ranging from 1.8% to 2.2% on American Express transactions following new rules.
• The extra charges allow firms to pass processing costs onto business clients despite new limits on traditional payment surcharges.
• Companies aim to preserve cash flow and offset commercial transaction costs while maintaining credit card payment options for clients.

REA Group (ASX:REA) introduced a 1.8% supplier trade fee plus tax on American Express (NYSE:AXP) payments to recover processing costs from commercial clients following new payment rules.

The fee rollout follows an Oct. 1 Reserve Bank of Australia ban on standard card surcharges aimed at saving consumers $1.6 billion annually.

"The fee we charge represents the actual cost to us for the transaction," said a REA Group spokesperson.

Additional corporate entities, including Shell Energy, Dicker Data (ASX:DDR), and Bluechip Infotech, added similar fees between 1.85% and 2.04% for business transactions.

The new fee structures allow firms to maintain business-to-business card processing while avoiding absorbed merchant expenses.

Following the announcement, the REA Group share price was up at $155.

The Reserve Bank of Australia excludes qualifying commercial payment arrangements from its consumer surcharge ban.

Meanwhile, the Australian Taxation Office stated it will permanently cease accepting credit card payments to avoid absorbing merchant fees.