In the age of digital transactions, it’s not uncommon to encounter a range of additional fees when making purchases. But how often do we stop to consider whether these charges are fair or even legal?
The Australian Competition and Consumer Commission (ACCC) has recently put businesses on notice for potentially misleading customers with excessive surcharges and hidden costs, a practice that could be more widespread than you think.
The ACCC’s warning comes as a timely reminder for businesses to reassess their card payment surcharges to ensure compliance with consumer law. The watchdog’s message is clear: transparency is key. Businesses are being urged to provide adequate disclosures upfront, allowing customers to make informed decisions before they part with their hard-earned cash.
For many of us over 50, who have witnessed the evolution of shopping from cash-only to the complex digital transactions of today, understanding these surcharges can be quite a challenge. It’s crucial to know that a card payment surcharge is typically deemed excessive if it exceeds the cost of acceptance for the business. In simpler terms, if it costs a business 1% to process your card payment, then that’s all they’re legally allowed to charge you.
ACCC Deputy Chair Mick Keogh emphasised the importance of honesty in pricing. ‘Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,’ he stated. Misleading consumers about prices is not just frowned upon; it’s against Australian Consumer Law.
The ACCC isn’t just wagging a finger; it is also extending a helping hand. The goal is to educate businesses, particularly small ones, to help them meet their legal obligations. After all, being caught out for charging excessive surcharges and keeping customers in the dark about pricing can lead to a loss of trust and, ultimately, customers.
For businesses that are less familiar with the intricacies of merchant services fees and permissible costs, the ACCC advises consulting a bank, accountant, or business adviser to get a clear understanding of the cost of acceptance. This knowledge is essential for businesses to determine the legal limits of what they can charge as a payment surcharge. It’s also important for businesses to review how they inform customers about their prices, including any applicable surcharges.
The ACCC’s crackdown on misleading surcharge practices is a step towards fairer transactions for all Australians. As we navigate the complexities of modern commerce, let’s stay informed and assert our rights as consumers.
What are your thoughts on the ACCC’s latest reminder to businesses? Have you noticed any unclear or unexpected surcharges recently? Feel free to share your experiences or insights in the comments below.
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The ACCC’s warning regarding misleading charges is both timely and necessary in the current digital transaction landscape. In an era where consumers are constantly bombarded with various fees, it’s crucial that businesses maintain transparency. For those of us over 50, who’ve seen the drastic shift from cash – only transactions to the complex digital payment systems today, these surcharges can be especially bewildering.
Businesses, big or small, must abide by the law and charge only what is fair. It’s disheartening to think that some might be taking advantage of consumers through excessive surcharges. Not only does this undermine trust, but it also goes against the principles of fair trade. The ACCC’s emphasis on businesses knowing their costs and communicating them clearly is spot – on. By doing so, they can avoid losing customers and build a more sustainable relationship with the public.
On the consumer side, we also need to be more vigilant. We should always check for hidden fees before making a purchase. If we notice any unclear or unexpected surcharges, we should speak up. This not only protects our own wallets but also helps maintain a healthy marketplace. The ACCC’s initiative to educate businesses, especially small ones, is commendable. It provides an opportunity for these enterprises to rectify their practices and operate within the bounds of the law.
In conclusion, a fair and transparent market benefits everyone. The ACCC’s efforts in cracking down on misleading surcharges are a positive step towards ensuring that consumers get a fair deal. I hope more businesses take this reminder seriously and that we, as consumers, continue to be watchful of our rights.
The much better and simpler way is to treat all card transactions as an OVERHEAD cost like wages, electricity, rent, council rates, etc, etc. Like it is already done. In other words, card fees should be included in the cost of all items before markup margins are applied.
Aldi are at least upfront with their charges for using a card, but I find mainly food places are now adding these charges, no mention that they do this but notice it when the bill comes in.
I pay no surcharges at all. If the business doesn’t accept cash, then they’ll lose a sale and I’ll go elsewhere! I refuse to pay for anything by card if a surcharge is added to the purchase!
The only exception is I use a card for my fuel purchase at my local unmanned petrol station, which is regularly around 5-25 cpl cheaper than other manned stations. There’s no surcharge for using my card for these transactions.