According to a new study by Canstar Research, Australians are spending over $4 billion annually on electronic payment services.
This is mainly due to the convenience of using a card or phone to make a purchase.
The study also found that the average shopper spent about $141 on electronic payment charges last year.
According to Steve Mickenbecker, a finance expert at Canstar, the reason for the spike in electronic payment charges is due to inflation.
For instance, from December 2022 to December 2023, the difference between the prices of goods and services during this period was around 6.4 percent.
He said that the fees are charged based on the percentage of the purchase price as well as the inflation rate. This increases the costs for the retailer and the consumers.
He explained that the money is sent to the banks, which then passes it on to the card issuers. The other two are Mastercard and Visa, which also receive a share.
Mickenbecker noted that since the fees are collected from the consumers, they are not distributed evenly across Australia.
However, he said that people can still avoid these fees by using a debit card or paying in cash.