A number of mainly small businesses in Cyprus have already transferred the credit card processing fee of the services provider to consumers.
Even though all retail businesses and services in Cyprus including lawyers and plumbers will have to accept plastic money as of September – by law.
In each business transaction involving credit cards, processing fees take a bite out of the total profits.
But this new trend in Cyprus has been observed in recent months due to the coronavirus pandemic as well, because of the need for contactless transactions.
This development prompted many small businesses to accept credit card payments but those with low turnover had to also change habits.
Because due to the small profit margin they have such on selling products such as cigarettes, phone cards, milk, newspapers and magazines, they had to transfer the processing fee to consumers.
The credit card processing fee and rate ranges between 2-4 cents.