Apr 09 2017

Surcharges on Credit Card payments in Australia

Credit Card Surcharges when Shopping in Australia

Not everywhere accepts a Credit Card without adding on a surcharge to cover the retailers fees from the Credit Card companies.

Most Supermarkets etc., do not add on extra for those paying by Credit Card, as the cost of credit card use is already built into their pricing, whether you pay by cash or card.

There are many others though that do charge extra, even the odd supermarket. eg: ALDI, who charge 0.5% for card use.

Note that I just said “Card use” and not “Credit Card use”.  Even Debit cards now carry the Visa and Mastercard logo, and are treated as such for these surcharges.  A quote from the ALDI website explains this:

Is there a surcharge on contactless transactions?
The contactless option of payment registers as a credit card purchase through the bank and the 0.5% surcharge automatically is added.

Another quote from the ALDI website explains why some retailers etc, do charge this Card Surcharge:

Rather than ALDI inflating prices across the board to compensate for the credit card acceptance costs (like most of the retailers do) ALDI instead allows customers to make the choice as to the payment method they prefer. This allows customers who choose the lower cost method of payment, to receive the direct benefit by way of lower prices.

Credit Card Surcharge Examples

Seen on a Hotel Website:
Please note that there is a 1.10% charge when you pay with a MasterCard credit card.
Please note that there is a 1.25% charge when you pay with a Visa credit card.
Please note that there is a 3.35% charge when you pay with an American Express or JCB card.
Please note that there is a 3.50% charge when you pay with a Diners Club credit card.

My Opinion

Paying a bit extra to cover the costs is reasonable, as the retailer is entitled to get the price they want, however, I still find this uncomfortable when I use my Debit card, and have to pay the credit card surcharge.
It would be easier if they stated “Card Surcharge” instead of “Credit Card Surcharge”. I could accept that better.

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