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Proposed Credit Card User Pays Fee Structure And Revenue (a) A Fixed Cost Purchase Fee of 10 cents per Credit Card Purchase; and (b) Variable Cost Purchase Fee of half of 1% of each dollar of each Purchase. The Proposed User Pays Fee calculation is a veritable Pimple on the backside of an elephant for Credit Cardholders enjoying the Three Purchase Benefits Of 'Tap And Go' in particular A Line/s of Credit because Purchasers do not pay for those ‘goods and services’ for between 45 and 55 days later. A $30 Purchase would incur a 25 cents User Pays Fee. A $50 Purchase would incur a 35 cents User Pays Fee. A $100 Purchase would incur a 60 cents User Pays Fee. A $200 Purchase would incur a $1.10 User Pays Fee. Average Credit Card Purchase is $108.83 Number of Credit/Charge Card Purchase transactions annually- Oct 21 - Sept '22 was 3,295,731,984 Estimated average Purchase amount of 80% of Purchases is $55 Estimated average Purchase amount of remaining 20% of Purchases is $210 Variable fee revenue for 80% of 3,295,731,984 Purchases @ $50 per Purchase @ 0.50% (½ of 1%) is $725,061,037 Fixed fee revenue for 80% of 3,295,731,984 Purchases @ $50 per Purchase @ 0.10% (½ of 1%) is $263,658,559 Variable fee revenue for 20% of 3,295,731,984 Purchases @ $210 per Purchase @ 0.50% (½ of 1%) is $692,103,797 Fixed fee revenue for 20% of 3,295,731,984 Purchases @ $210 per Purchase @ 0.10% (½ of 1%) is $65,914,640 $1,746,737,951
Credit Cardholders with only Level 1 and Level 2 Financial Literacy Capacity have for too long carried the burden of paying for the provision of Credit Card Products in Australia. They can now get a Fair Go - as proclaimed by five former Prime Ministers in THE CONVERSATION article "In Australia, land of the ‘fair go’, not everyone gets an equal slice of the pie". See
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