Large companies banned from making excessive credit card charges from Thursday

AUGUST 28, 2016
News.com.au
AUSTRALIAN families should find a range of goods and services cheaper after excessive surcharging on using the plastic is banned from Thursday.
The Turnbull government passed legislation in February that prevents large businesses charging excessive fees on using cards or face substantial penalties, while smaller merchants will have a further 12 months to comply.
Qantas has announced sweeping changes to its surcharging practices while virgin Australia has indicated it will do the same.
For example, new and old rates published by Qantas show that a $100 domestic airfare paid for by a credit card that would have effectively attracted a 7 per cent surcharge under the its old fixed charge regime will, from 1 September, attract a surcharge of 1.3 per cent or $1.30.
“Consumers are entitled to a fair deal. That’s why the Turnbull government took action to ensure customers aren’t charged more than they should be,” Treasurer Scott Morrison said in a statement on Sunday.
Sports fans and concert goers are also likely to benefit with major ticketing firms also being subject to the ban, Mr Morrison said.
The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing the ban.
The nation’s overall credit card debt that attracts interest charges has dropped 11 per cent in the past four years — saving consumers more than $700 million — but still sits at $33 billion, while our overall credit card debt has reached a record high of $52.2 billion.