Online businesses raise alarm over ‘hidden’ transaction fees

One business which has been impacted by high fees is Little Green Radicals, which was founded 18 years ago and makes children’s clothing with a focus on sustainability and fair trade.

While the business continued to grow, despite the challenges of the last few years, founder, Nick Pecorelli, was increasingly focused on where the business could make greater savings.

He said: “We pay, on average, 2.9% per transaction, which as a small business is a lot.

“I kept asking myself, why are we paying these high transaction fees-there must be an alternative.

“When I heard about Super Payments, I leapt on the idea because the savings I make mean I can offer customers a cash reward on every purchase they make.”

A separate study of 2,000 adults, also commissioned by the payment provider, found 43% had no idea payment fees running up to 5% of the purchase price were being added to the cost of items.

And 37% have sympathy for online retailers because of the "behind the scenes" costs they encounter.

While 45% of shoppers polled, via OnePoll, would shop more if these fees did not exist and retailers did not need to pass them on, hiking the cost of a transaction.

Samir Desai, founder and chief executive officer of Super Payments, said: “For too long, both businesses and shoppers have been stung by high payment fees, in many cases without even knowing it.

“At a time of high inflation and increases in the cost of living we believe payments on the internet should be free.”

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