Businesses have been reminded to ensure that their card payment surcharges are in line with the cost of accepting card payments.
The Australian Competition and Consumer Commission (ACCC) has also reminded businesses to adequately disclose any upfront card payment surcharges that apply, so that customers can make informed decisions before ordering, booking, and paying for a product or service.
The reminders come as the ACCC zeroes in on misleading surcharging practices and other add-on costs for the 2025-26 financial year. As such, the agency will be actively monitoring business compliance and may take appropriate compliance or enforcement action, in line with its Compliance and Enforcement Policy.
“Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,” ACCC deputy chair Mick Keogh said.
Laws have been in place to regulate pricing and card surcharges, with the Australian Consumer Law prohibiting businesses from misleading people about the prices they charge and the Competition and Consumer Act, which prohibits businesses from charging a card payment surcharge that is higher than the business’s ‘cost of acceptance’ for credit card payments.
In relation to the campaign, the ACCC has commenced an education and compliance campaign to inform businesses, particularly small businesses, of their obligations and help them to comply with the relevant laws.
The agency is also helping businesses comply with the law through advertisements, updated guidance materials, and close engagement with relevant industry representatives to support their small-business members in complying with the laws.
“We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business; however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers,” Keogh said. “It is important for small businesses to ensure they understand their obligations and check their costs of acceptance to know what amounts they can legally charge their customers as a payment surcharge, as well as reviewing how they inform customers of their prices, including any applicable surcharges.”
More information to help businesses comply with the law is available on the ACCC website. Businesses are also encouraged seek advice from their bank or payment facilitator, an accountant, or business advisor to assist them, especially concerning their ‘cost of acceptance’.
This story was originally published on Inside Small Business.
