Credit card surcharges overhaul leaves companies facing fines if found overcharging consumers

Companies that charge consumers excessive credit card fees will be hit with big fines under a ban that takes effect on Thursday.

Key points:
•Limits come into force for large companies this month, smaller businesses next year
•Consumers charged an excessive surcharge can contact the ACCC via its website

The new law limits the amount businesses can charge customers to use payment methods such as EFTPOS, MasterCard, Visa and American Express cards issued by Australian banks.

Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said companies “won’t be able to charge whatever they like” depending on how you pay for a bill.

“The companies will only be able to charge roughly half a per cent for a debit card, 1.5 per cent roughly for a Visa or MasterCard, and say 2.5 to 3 per cent for a bank-issued Amex card,” Mr Sims told the ABC.

“This is really irritating for consumers, they go right through a transaction be it booking a flight, booking a theatre ticket, booking the footy finals, and only at the end do they find they’re subject to another charge.”

For the first year, the law only applies to large businesses with at least two of the following criteria: a gross revenue of $25 million or more, assets worth at least $12.5 million or with 50 or more employees.

It will apply to all businesses from September 1, 2017.