Card Surcharge Concerns Highlighted in Australia
Radio host Matty Acton has drawn attention to card surcharges faced by Australian consumers after recently incurring a 1.65 percent surcharge on a $119.11 purchase, increasing the total to $121.08.
The Annual Cost to Consumers
Australians are estimated to spend $1.2 billion annually on card surcharges. The Reserve Bank of Australia (RBA) is reportedly considering measures to ban these fees.
Acton suggested that a family's annual card fees could range from $500 to $1,000.
RBA estimates indicate the average adult spends approximately $60 per year on such charges, while Payment Services places the figure closer to $140 annually.
Consumer Confusion and Parliamentary Questions
Confusion exists among consumers regarding the calculation of these percentage-based fees. Labor MP Jerome Laxale also questioned bank executives in Parliament about the disparity in cost between cash and card payments for the same item.
Understanding the Surcharges
According to Mastercard, card surcharges are attributed to merchant service fees. These fees are paid by merchants to their terminal providers for the acceptance of digital payments.