Laws target greedy card surcharges
New laws to ban excessive card surcharges by businesses have been passed by the Federal Government and will take effect this year.
The laws equip the Australian Competition and Consumer Commission with powers to enforce the laws, including the ability to gather information from those involved in payments process and the authority to issue infringement notices against those engaging in excessive surcharging.
Durack MHR Melissa Price said the new laws ensured a fair deal for Durack consumers.
“Card and other electronic payments facilitate billions of transactions every year,” she said.
“While many merchants do pass on costs fairly, some engage in this practice abusively.
“The ban on excessive surcharging will work in tandem with Reserve Bank of Australia Payments System Board standards that will set the permitted surcharge for payments.”
If the ACCC forms the view that a merchant has engaged in excessive surcharging, it may issue an infringement notice, including a penalty for listed corporations of up to 600 penalty units, currently $108,000, for each alleged contravention.
The scheduled commencement of the new laws will allow for the RBA consultation process to take place, while providing a reasonable period for merchants to prepare for the new arrangements.
Melissa Price has welcomed new credit card laws.