As of September 1st, the Reserve Bank of Australia (RBA) rules for surcharging have come into effect for all businesses.
This means, if you apply a surcharge for card payments to recover all or part of your merchant service fees, you’ll only be able to charge up to the average amount it costs you to accept that card type for that transaction for a 12 month period.
Costs of accepting card payments
Indicative cost by the RBA. Some merchants’ costs might be higher
The ban restricts the amount a business can charge customers for using an EFTPOS (debit and prepaid), MasterCard (credit, debit and prepaid), Visa (credit, debit and prepaid) and American Express cards issued by Australian banks.
This ban applies to every business across Australia, meaning you will be banned from charging customers excessive surcharges for using certain types of EFTPOS, Mastercard, Visa and American Express cards to make payments.
A surcharge will be considered excessive where it exceeds the permitted cost of acceptance, as defined by the Reserve Bank of Australia.
You can’t charge more than what it costs you
Monetary fines for non-compliance can be enforced by the ACCC if businesses incorrectly surcharge.
For more information on what the ban covers head to the ACCC website and read through a Q&A on payment surcharges.
And if you require help with implementing the right surcharge levels for your business, contact the Creative team.