The Federal Government has put retailers that overcharge customers for processing credit cards on notice. The ban on excessive fees could save customers up to $100 per year.
It has long since been highlighted that the cost of processing credit cards nominal, about 0.5 per cent of the purchase, however, airlines, retailers, energy companies, ticket agencies and telecom companies continue to charge fees of up to five per cent.
Reported in today’s News Limited publications, the move stems from ex Commonwealth Bank chief David Murray’s financial System Inquiry and will see retailers only able to charge 0.5 per cent, or 12 cents, whichever is less, to process a credit card payment.
It is understood that the Australian Competition and Consumer Commission (ACCC) will be given the powers to investigate and punish companies that flout the charges. Currently, it is up to card companies, Visa, MasterCard and American Express, to clamp down on retailers that overcharge.
Read more at Heraldsun.com.au
What’s the most you’ve ever been charged for processing a credit card? Do you think giving the ACCC the necessary powers will be an effective deterrent?