Card surcharges are banned – what can you do if you get charged?
Key takeaways
- A business can't rename a card surcharge a platform, service or admin fee to get around the rules – but they can still charge these fees.
- Businesses are allowed to increase prices and/or offer discounts for cash payments.
- If you spot an unexpected fee, ask what it's for, document it and raise a complaint if you think it's linked to paying by card.
Card surcharges are officially a thing of the past. Aussie businesses can no longer charge customers extra because they pay by card.
But can businesses give a card surcharge a new name and keep charging you?
It could be called a platform fee, booking fee, service fee, handling fee or an admin fee. Or it could be called something else entirely.
The name of the fee doesn't really matter
What matters is what you're actually being charged for.
The Australian Competition and Consumer Commission (ACCC) has issued a sharp warning to businesses: they can't avoid the new rules by simply disguising a card surcharge as another type of fee.
Amy's business → charges every customer a $2 booking fee for her events, whether they pay by cash, bank transfer, debit card or credit card.
✅ Legitimate non-card-related fee.
Rohan's business → charges 2% service fee only when you pay by credit card, or a 0.5% fee if you pay by cash, debit card or bank transfer.
❌ Calling it a "service fee" doesn't make it okay if the extra 1.5% is effectively a credit card surcharge
Bottom line: if the fee is still linked to your choice of payment method, it's probably against the rules.
What should you do if you see an extra fee at checkout?
A genuine platform fee can still be charged. For instance an online ordering platform might charge a fee for using its service, regardless of how you pay.
- Ask what the fee is for. If they admit it's specifically because you're using a card, ask them to remove it.
- Document your experience. If they refuse, keep your receipt and take a screenshot or photo of the advertised price and the fee.
- Lodge a complaint. Raise the issue with them in writing, or report concerns about misleading pricing to the ACCC or your state or territory consumer protection agency.
What if businesses hike their prices to compensate?
Businesses can increase their prices to account for costs, provided they comply with pricing and consumer law.
They can also offer discounts for paying with cash.
That chunky cash discount has me wondering: will more people use cash to save money?
Banks and credit providers are stripping some credit card benefits and perks, but I think rewards credit cards are even better value than ever. Here's why
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