Card payment sucharges banned in Australia from 2026

[SeaWolf]

I just bought something at a restaurant that cost $21.90. There was a notice on the counter that Visa and Mastercard attract a 1.5% surcharge. I was then handed an eftpos terminal with the amount showing as $22.40. How is this legal?

It's not legal, but who's going to stop them? One of the major issues with the current system has been the near total lack of enforcement of the already too weak rules. Also, how many people do you think would notice that the surcharge is wrong? I'm guessing almost no one. You've been very diligent checking it, but you're probably the first to do that.

It's frustrating, but what you've just experienced is one of the reasons cited by the RBA to put an end to this mess.

 

[GrahamBRI]

It's frustrating, but what you've just experienced is one of the reasons cited by the RBA to put an end to this mess.

I am not convinced (yet) that the RBA will achieve anything effectual. Time will tell, but their changes compelling retailers to display CC charges, were clearly not effective, what will make these effective - as I understand it; weekend surcharges, public holiday surcharges, fuel surcharges, corkage fees, and, and, are sill all okay…….. these CC changes will just shift revenue structures, I do not expect them to change revenue outcomes…… so the net cost to the net consumers will be exactly the same….. my thoughts.

 

[Mr_Orange]

weekend surcharges, public holiday surcharges

Don't get me started on this nonsense!

 

[Mr_Orange]

what will make these effective

That's a fair question on the basis of the apparent lack of enforcement of the current rules. From about mid-August, I intend to start telling the businesses that I use regularly about the upcoming ban on surcharging. I'm not sure how effective that will be, but it can't hurt.

 

[LondonAussie]

Don't get me started on this nonsense!

I had lunch at a restaurant today that had “daily surcharge” on the bill (and a card surcharge on top of that). Questioned it with the waiter and he said it was for the fuel crisis. Felt like we were getting scammed.

 

[burmans]

That's a fair question on the basis of the apparent lack of enforcement of the current rules. From about mid-August, I intend to start telling the businesses that I use regularly about the upcoming ban on surcharging. I'm not sure how effective that will be, but it can't hurt.

As is evidenced in the example given above with current rules it's not necessarily easy to determine if the rules are being broken (though some cases are indeed fairly obvious), it will be much easier with the new rule and hence I suspect easier to notice (and report) and therefore enforce.

 

[SeaWolf]

I had lunch at a restaurant today that had “daily surcharge” on the bill (and a card surcharge on top of that). Questioned it with the waiter and he said it was for the fuel crisis. Felt like we were getting scammed.

By the sounds of it you have been scammed. If that surcharge was incorporated into the displayed price, so the menu said $20 for the item and that's what you paid and the surcharge was only broken out in the bill (i.e. the displayed price included the surcharge), then that would be fine. But it sounds like what you're saying is that the menu price said $20 and then the surcharge was added on top, which is not legal unless there's a way to avoid the surcharge somehow.

There's some quotes from NSW Fair Trading in this ABC article outlining what is and isn't permitted.

What to know about cafes using surcharges to offset fuel crisis impact

Shoppers may have noticed an extra charge at the checkout as businesses seek to offset rising operational costs associated with the fuel price hike. Here is what you need to know.

www.abc.net.au

By the sounds of it NSW Fair Trading is keen to hear about examples of this occurring, so I'm guessing all the relevant state fair trading bodies would be interested in it being reported.

 

[daft009]

We're in industrial sales and our domestic freight has jumped up 30% ish. We're passing on 20%

Luckily I have enough stock so no need to increase product pricing

 

[Waddygib]

By the sounds of it you have been scammed. If that surcharge was incorporated into the displayed price, so the menu said $20 for the item and that's what you paid and the surcharge was only broken out in the bill (i.e. the displayed price included the surcharge), then that would be fine. But it sounds like what you're saying is that the menu price said $20 and then the surcharge was added on top, which is not legal unless there's a way to avoid the surcharge somehow.

There's some quotes from NSW Fair Trading in this ABC article outlining what is and isn't permitted.

What to know about cafes using surcharges to offset fuel crisis impact

Shoppers may have noticed an extra charge at the checkout as businesses seek to offset rising operational costs associated with the fuel price hike. Here is what you need to know.

www.abc.net.au

By the sounds of it NSW Fair Trading is keen to hear about examples of this occurring, so I'm guessing all the relevant state fair trading bodies would be interested in it being reported.

I think scam feels too harsh; probably they are seeing costs rise, and want to put their prices up to compensate. They don't want to undergo the cost and/or hassle of replacing or editing menus or boards or whatever, especially if they think (hope?) their costs will revert. So adding a surcharge via their POS system might be simplest for them.

Doesn't make it necessarily right (or perhaps legal) but I think, at very least, its worth blaming incompetence before malice.

 

[MEL_Traveller]

I think scam feels too harsh; probably they are seeing costs rise, and want to put their prices up to compensate. They don't want to undergo the cost and/or hassle of replacing or editing menus or boards or whatever, especially if they think (hope?) their costs will revert. So adding a surcharge via their POS system might be simplest for them.

Doesn't make it necessarily right (or perhaps legal) but I think, at very least, its worth blaming incompetence before malice.

Regardless, it would be illegal to do so.

Businesses must update their pricing to include any mandatory surcharges. Even if that means reprinting or amending each price on a menu.

 

[Waddygib]

May well be, as I said. But should it be? Who is the victim here? I personally don't have a problem with the surcharge in this instance, as long as it is equally applied to all patrons and it's there for people to see before they choose to order. Ideal? No. Should it be more than temporary? No. But, assuming it is what I think it is, would I want to see this business fined or someway punished? Also no?

 

[MEL_Traveller]

May well be, as I said. But should it be? Who is the victim here? I personally don't have a problem with the surcharge in this instance, as long as it is equally applied to all patrons and it's there for people to see before they choose to order. Ideal? No. Should it be more than temporary? No. But, assuming it is what I think it is, would I want to see this business fined or someway punished? Also no?

The consumer is.

Otherwise we’re gonna end up like the USA where the price you see doesn’t match the price you pay.

If a business needs to put up their prices, fair enough, but they also need to update their price sheet.

 

[Waddygib]

Even if they honestly expect it to be temporary? I think if it is clearly displayed (eg "10% added to Bill to cover temporary higher costs") I'm fine with the mild inconvenience of some mental Maths.

As an ongoing thing, yeah I agree it sucks.

 

[MEL_Traveller]

Even if they honestly expect it to be temporary? I think if it is clearly displayed (eg "10% added to Bill to cover temporary higher costs") I'm fine with the mild inconvenience of some mental Maths.

As an ongoing thing, yeah I agree it sucks.

Even if it’s temporary.

It makes the comparison of prices fair. Businesses don’t *have* to impose a surcharge, so it’s unfair on businesses who don’t. And it’s unfair on those who do update their prices.

And if the business wants to charge an extra five percent, why not go to a tiny bit of effort to update your pricing?

 

[Berlin]

Regardless, it would be illegal to do so.

Well- and who’s going to enforce it, let’s try call Redfern police and see what happens. Nothing, exactly.

So- if you get screwed by the restaurant and that’s “illegal”- is it then fair go, leave the menu listed price on table and exit the restaurant?

 

[SeaWolf]

Well- and who’s going to enforce it

This particular surcharge would fall within the remit of the relevant state's Fair Trading entity. I think there's actually a decent chance there will be some enforcement. One of the issues with the card surcharges was that the enforcement fell to the federal ACCC, who wasn't resourced to do anything about it. That's not the case here, the Fair Trading bodies are much better resourced for on-the-ground enforcement (it's one of their key functions) and are on the lookout for these sort of "fuel surcharge" shenanigans at the moment. They do generally expect you to try to resolve the issue with the business directly first though. So, at least emailing the business to complain and, potentially, getting a reply from the business telling you to get lost.

Here's the NSW Fair Trading page on drip pricing, along with details about how to lodge a complaint online:

Pricing standards

Businesses must display clear and accurate prices of their goods or services and follow the law if initiating practices like surcharges or comparison pricing.

www.nsw.gov.au