Misleading surcharging pricing and other add-on costs will be an enforcement priority for the ACCC over the coming financial year.
Australian Consumer Law (ACL) prohibits businesses from misleading people about the prices they charge. The ACCC is encouraging businesses to review their card payment surcharges.
Deputy chair Mick Keogh said businesses need to ensure they charge only what it costs to accept card payments.
“We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business; however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers,” Keogh said.
“It is important for small businesses to ensure they understand their obligations and check their costs of acceptance to know what amounts they can legally charge their customers as a payment surcharge, as well as reviewing how they inform customers of their prices, including any applicable surcharges.”
The Competition and Consumer Act prohibits businesses from charging excessive surcharges for a card payment. A card payment surcharge is deemed excessive if it exceeds the cost of acceptance.
The ACCC has commenced an education and compliance campaign to inform businesses of their obligations and help them to comply with the relevant laws.
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