S&D Living owner Sheila Reynolds said after the pandemic hit there has been an emphasis on encouraging customers to use cards when paying.

It is a trend she supports as a safety measure, but one she finds frustrating when it comes to terminal fees.

Each time a card payment is processed, Mrs Reynolds cops a fee depending on whether debit or credit is used and if it is Visa, Mastercard or American Express.

S&D Living is a homewares shop with a small cafe inside and for the bigger ticket items such as couches or tables, the fee is less of an issue, Mrs Reynolds said.

It is the multiple smaller transactions, she said, that make the most significant dent.

"Even if someone is just buying a bottle of water for $3 or a medium coffee for $5, we still have to pay the fee," Mrs Reynolds said.

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"In the month of December alone, I had to pay more than $350 just in the transaction fees. It's just one more blow to small businesses."

Mrs Reynolds has considered implementing a surcharge to cover the cost but said customers could get irate over the slight increase.

"I think the banks need to look into lowering the fees," she said.

"We work so hard, and yet the banks are the ones who end up with the money."

Wagga Business Chamber president Rhyley Hunter said it was an issue that had been brought his attention, particularly as one that affects the retail and hospitality sector.

He said there needs to be a discussion on a national level as cashless payments become more common.

"There are some concerns over the fees," Mr Hunter said.

"Something needs to be done on a national level in regards to the banking sector. That's the only possible solution to this dilemma.

"The banks should look to lower those fees or to get rid of them entirely, but you just don't know."

Mr Hunter said businesses should weigh up whether to try and balance the fees by introducing a surcharge.

If that is the chosen option, he said, it is imperative to make sure the fee is explained to the customer and well signposted on entry.

"Even for me, if there is a surcharge, then that's fine, that's what I have to pay," he said.

"As long as it is communicated the right way. People should also be understanding of why a business might have a surcharge in place."