Australia’s consumer watchdog has called on businesses to ensure that their card surcharges comply with the law.
The Australian Competition and Consumer Commission (ACCC) is encouraging businesses to review their surcharges so that they do not exceed the actual cost of accepting card payments.
Businesses must also clearly disclose any card payment surcharges to customers upfront.
ACCC Deputy Chair Mick Keogh emphasized that customers should be made aware of any surcharges in advance and that businesses should only charge what it truly costs to process card payments.
Under Australian Consumer Law, it is illegal for businesses to mislead customers about prices or to impose excessive card payment surcharges.
This year, the ACCC plans to focus on educating businesses about their legal obligations to promote better compliance.
Keogh acknowledged that small businesses face many compliance requirements but warned that charging excessive surcharges or hiding fees can result in losing customers.
He stressed the importance of small businesses understanding their legal responsibilities, checking their payment processing costs, and being transparent with customers about any surcharges.
