Australian shoppers are being hit with a sneaky fee when they pay with EFTPOS, while retailers are not passing on falling costs to customers. What should be done to stop it? HAVE YOUR SAY
Sophie Elsworth, National personal finance writer,
News Corp Australia Network
November 2, 2019
Saving up can be a hard slog; but there are a few easy ways to reach those savings goals faster.
Exclusive: Australians are being hit with a sneaky fee when they pay with EFTPOS.
News Corp can reveal shops are charging as much as 1.75 per cent extra on every transaction — the equivalent of 6c for a $3.50 cup of coffee or 43c for a $25 meal.
Customers often have no idea they’re being stung, with fees mounting as they favour cards for everyday purchases over cash.
The slug comes as shoppers already face surcharges for paying with a credit or debit card including via “tap and go”.
It means there is now often no escape from fees if they’re paying by card.
Consumer Action Law Centre chief executive officer Gerard Brody told News Corp while surcharges might seem small they added up over the long run.
Australian make around two billion EFTPOS transactions alone each year worth more than $130 billion.
“I can certainly understand people feeling it’s unfair because they can’t avoid the charge,’’ Mr Brody said.
“Anyone who sees surcharges that are high should complain to the ACCC.”
News Corp found multiple stores charging customers “payment processing fees” when they hit savings or cheque on card terminals.
One cafe charged 1.75 per cent and another 1.65 per cent.
Each displayed a list of charges at the counter.
Choice spokeswoman Erin Turner said businesses were only allowed to on-charge what it cost them to accept credit and debit cards.
“The costs to businesses to accept EFTPOS and debit payments are very low,’’ she said.
“Businesses that charge high and unfair fees leave their customers paying hundreds of dollars a year more than they should.”
Under the law retailers can incorporate the cost of providing card payment into the price of products or charge a separate fee.
Surcharges of no more than 1 per cent are typically regarded as fair with big fines in place for shops which overcharge.
EFTPOS spokesman Warwick Ponder said: “We encourage merchants not to surcharge for EFTPOS transactions but, in the end, it’s a matter for the merchant and their customers.”
“If customers are concerned that a merchant is surcharging more than it costs them to accept the transaction, they should report the merchant to the ACCC,’’ he said.
“EFTPOS remains committed to be a lower cost payments network and our wholesale rates reflect this.”
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