ACCC gets tough on credit card surcharge
Be wary if you charge fees for accepting credit cards as payment in your business.
The Australian Competition & Consumer Commission (ACCC) has issued a warning to businesses charging excessive credit card fees. The new rules, which came into effect from 1 September 2017, prevent merchants from charging more than the true cost of the transaction.
As a guide, where a charge is imposed, the ACCC says that consumers should expect to pay around 0.5% to 1% for payment by debit card, 1% to 1.5% by MasterCard and Visa credit cards and 2% to 3% for American Express.
One large merchant has already been issued with four infringement notices and has paid $43,200 in penalties.
Consumers are being encouraged to contact the ACCC if a business is charging more than what the ACCC expects.
Please note, we are closed for the Christmas & New Year break and will be back in the office from 9 January 2017.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.