Card payment sucharges banned in Australia from 2026

[simmomelb]

So if you had a gift voucher at. Merchant for $200 and the bill came to $220, and paid the difference with a credit card , and the surcharge was 1.5% then you’d expect to pay a $3.30 surcharge and not a 30c surcharge on the $20 credit card payment ?

This isn't a gift voucher, it's not remotely the same thing, it's a credit card.
No credit card or debit card works that way, it has always been like this.
The CC/bank charges a percentage to the vendor, based on the total amount transacted, full stop.
Again, should I always put my credit card in credit to avoid paying transaction fees? Doesn't work that way, the transaction fees are always based on the transacted amount.
This is how CC companies/banks make money on cards (along with late payment fees, interest etc).

By the way, if you were given a $200 gift voucher, and that voucher wasn't paid for with cash, it was already billed an extra ~1.5% at the time of purchase (which the retailer may or may not pass on to the customer, but it was still charged).

 

[dajop]

This isn't a gift voucher, it's not remotely the same thing, it's a credit card.
No credit card or debit card works that way, it has always been like this.
The CC/bank charges a percentage to the vendor, based on the total amount transacted, full stop.
Again, should I always put my credit card in credit to avoid paying transaction fees? Doesn't work that way, the transaction fees are always based on the transacted amount.

But it’s not a credit card. I scan the Priority Pass - the $36 get billed to Priority Pass (or whatever their agreed recovery is), it gets deducted from my bill. If I pay cash on a $37 bill I pay $1 cash - no surcharge on the $36. . If I pay card I pay $1.55.

 

[simmomelb]

But it’s not a credit card. I scan the Priority Pass - the $36 get billed to Priority Pass (or whatever their agreed recovery is), it gets deducted from my bill. If I pay cash on a $37 bill I pay $1 cash - no surcharge on the $36. . If I pay card I pay $1.55.

It's still treated as a credit card/debit card on a transactional level, and, as such, comes with associated transaction fees, based on the total amount charged.

 

[dajop]

It's still treated as a credit card/debit card on a transactional level, and, as such, comes with associated transaction fees, based on the total amount charged.

It’s still seems wrong from a customer perspective which is another reason why this whole surcharging thing is BS . The transaction with my CC provider is for $1 not $37. I don’t pay a 54c surcharge on the $36 if I pay by cash or if I don’t have any top up.

 

[Aeryn]

This is not my experience. Whever I have split payment across voucher/cash and credit card; any credit card surcharge has only ever applied to the amount actually paid by Credit Card. IME the amount is only sent to the credit card terminal after any other payments have been processed.

YMMV.

 

[simmomelb]

It’s still seems wrong from a customer perspective which is another reason why this whole surcharging thing is BS . The transaction with my CC provider is for $1 not $37. I don’t pay a 54c surcharge on the $36 if I pay by cash or if I don’t have any top up.

I give up. Take it up with the RBA & ACCC

 

[Happy Dude]

It's still treated as a credit card/debit card and, as such, comes with associated transaction fees, based on the total amount charged.

It's a vendor thing. Not sure why some vendors process the PP $36 differently.

I use my PP's at Stomping Ground at MEL T3. Bill comes to $38. Only the $2 "top-up" shows up on my CC. They don't seem to surcharge.

 

[dajop]

It's a vendor thing. Not sure why some vendors process the PP $36 differently.

Thank you. Good to know. Maybe it's something on the international side

 

[dajop]

This is not my experience. Whever I have split payment across voucher/cash and credit card; any credit card surcharge has only ever applied to the amount actually paid by Credit Card. IME the amount is only sent to the credit card terminal after any other payments have been processed.

YMMV.

That's what I previously believed. Clearly this is wrong in some instances and we should just respect whatever arrangements the vendor has in place. They'd never ever try to rip us off (any more than they would charging inflated airport prices ).

 

[Mr_Orange]

I think the key point is, what amount, excluding surcharge, was charged to your card? $37 or $1?

 

[dajop]

I think the key point is, what amount, excluding surcharge, was charged to your card? $37 or $1?

Just $1.

 

[simmomelb]

Just $1.

But you said you had $36 on your Priority Pass card?
So what was the extra $1 charged to?
Did you pay $36 on your Priority Pass card, then $1 on another CC/DC?
ie, none of it was with cash.

 

[Mr_Orange]

Just $1.

In that case, the surcharge is incorrect.