Businesses can refuse to accept credit card payments in Australia because they set their own payment terms. This means a business can choose to only accept cash or only accept cards. But most businesses offer a few ways to pay.
The Australian Competition and Consumer Commission says:
If a business won't accept your preferred payment method, the ACCC says "you may have to take your business elsewhere."
| Response | Male | Female |
|---|---|---|
| Weekly | 13.91% | 10.69% |
| Daily | 6.95% | 4.14% |
| Monthly | 3.76% | 3.97% |
| Less often | 1.5% | 2.76% |
| Only for emergencies | 0.38% | 1.03% |
Whenever a business (merchant) accepts card payments, they have to pay fees. The two most common fees are:
Businesses can apply a surcharge on card payments to cover these costs. But there are conditions on surcharges, so the added costs and/or admin can lead some businesses to avoid or not accept different cards.
American Express cards in particular charge higher interchange fees than other cards (1.5-2.0% compared to 1.0-1.5% for Mastercard or Visa). This means that the merchant ends up losing more money on transactions with American Express cards than with other cards, so they may choose to refuse them.
Fraud and theft are always a concern for businesses. If a credit card has been stolen but not reported yet, for example, the criminal could use it at a business without them realising. Especially if it's a contactless payment that doesn't need a PIN or other verification.
If that happens, the business manager or owner will have to go through a chargeback process. Fraud with cash is much less of an issue for the merchant.
Payment terminals and card transactions require time and money for a business to set up. Some small businesses decide the cost and time isn't worth it.
If you think a business has acted unreasonably, you can make a complaint to management. Alternatively, contact the Australian Competition and Consumer Commission (ACCC) to find out about your legal rights and/or lodge a complaint.
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Hi Valory,
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