The retail business is one of the most lucrative sectors in the Australian economy.
It employs more than 14,000 people and generates almost $100 billion annually.
It accounts for about 25 per cent of the nation’s gross domestic product.
But with many people opting to buy on their credit card, the credit card industry has struggled to catch up.
Many retailers, like Jagger, have a credit card agreement with their card issuer.
That means that when a consumer purchases a product, they’re signing up to an annual fee that can add up quickly.
“It’s a bit like buying a pair of shoes for $100,” said Josh Waddell, a senior economist at the National Australia Bank.
“There’s a risk of not paying for the whole shoe.”
Jagger, whose business is based in Sydney, operates through the Sydney Credit Union, and is in the process of converting its cardholders.
“We’re looking at changing our card and switching to a cash-based model, where we’ll be able to take payments directly from our bank account,” he said.
It’s not an easy change, as the credit cards companies don’t want to take away from their already strong customer base.
In an effort to make the change, Jagger will have to reduce costs by about 50 per cent, and change its approach to its card.
The company has set up a “no fees, no strings attached” model, in which customers pay an annual transaction fee of about $200.
Jarrett said the changes are a step in the right direction, but the business is still facing some challenges.
For example, it can’t make payments directly to customers because the credit-card companies have a number of rules in place.
When you make a purchase online, your card issuer can charge a processing fee for processing the transaction.
The processing fee can be as high as 0.5 per cent.
The processing fee applies to the full amount of the transaction, but Jagger says it will likely have to increase it as the cost of processing the transactions rises.
One of the biggest challenges in the retail business, according to Josh Warshaw, a partner at the law firm, says the industry is also facing an increased threat from cyber attacks.
“We’re seeing more of these cyber-attacks and the companies that we work with, we’re getting a lot more cases,” he told Al Jazeera.
This isn’t the first time the credit unions have had to face pressure from the credit bureaus.
In April, a dispute between two of the credit union’s cardholders forced them to close shop.
Earlier this year, JAB launched an initiative called The Credit Union Initiative (TCI) that offers a range of free credit products to businesses.
However, Warshaws fears that the credit organisations will see the initiative as an “all-out attack”.
“The whole credit union is going to see the TCI as a way to try to undermine them and basically put them out of business,” he explained.
“In the end, it will be more of a one-way street for the credit issuers to try and drive down the cost and cut out competition.”