Do you charge customers a surcharge on transactions? This is a quick guide to what you can and can’t include when working out your surcharge.
From 1 September 2017, all businesses that impose payment surcharges on card transactions need to comply with the new law that bans excessive payment surcharges.
The purpose of the ban is to stop payment surcharges that are more than the actual cost of accepting that payment method. The cost to a business of accepting each payment method is also known as the ‘cost of acceptance’ for that method.
A payment surcharge is considered excessive if it exceeds the ‘cost of acceptance’.
For example, if your cost of acceptance for Visa Credit is 1% you can only surcharge 1% on Visa credit card payments.
You are not required to impose payment surcharges, it’s your decision. If you do not impose them this law will not affect you.
To find out which payments are affected visit Australian Competition and Consumer Commission.