More than half of surveyed Australian grocers name operating costs and cash flow as the biggest challenges to business operation, followed by staffing, stock management, and store appearance and upkeep.

A new study, commissioned by Visa in partnership with Master Grocers Australia (MGA), has identified some of the biggest hurdles for operators in the challenging industry sector.

With respondents across MGA’s entire membership base, the study also revealed the majority of surveyed grocers, 87 per cent, agree managing the costs of multiple credit card payment systems can be challenging.

Furthermore 91 per cent say using a low cost credit card payment system is important to their bottom line.

Despite this, just over half of participants accept American Express, even though the Reserve Bank of Australia recently reported that these transactions incur a merchant fee of more than twice the average cost of Visa cards.

Chris Broad, head of acceptance, Visa, said it as important for independent operators, trading in such a competitive sector, to provide convenient ways for their customers to pay, while keeping costs to a minimum.

“This partnership is a great milestone for Visa and MGA, and a partnership we aim to continue in future,” Broad said.

“Our goal is help Australian retailers save costs by finding the best way to accept payments for their business”.

The survey also uncovered key industry insights on how businesses are adapting to evolving payment technology, with over 57 per cent saying they have already installed a contactless payment terminal in store, such as Visa PayWave, and more than 70 per cent say this has provided benefits for their business and customers.

Recognising the benefits of Visa technology for business, MGA recommends Visa as the preferred payment solution for the Australian independent grocery industry.

Jos De Bruin, CEO, MGA said some businesses are paying more in card acceptance costs than they need to because they accept or promote the use of higher-cost credit cards in their stores.

“We’re proud to partner with Visa and strongly support the benefits Visa can provide our members. Managing costs and cash flow is undoubtedly a key function for any Australian business but particularly within the independent sector,” De Bruin said.

“We’re confident this partnership will assist members and provide better access to information on payment systems.”