Retail businesses have been warned about card surcharge laws after a luxury hotel was caught by the Australian Competition and Consumer Commission (ACCC) overcharging customers.

“Businesses must not charge customers a card payment surcharge that is in excess of their cost of accepting the type of card that is being surcharged,” said ACCC deputy chair Mick Keogh.

The warning follows an ACCC investigation into Hyatt Hotels Corporation after the Hyatt Regency Sydney was found to have implemented debit card surcharges at a rate above its costs of accepting debit cards, in breach of the Competition and Consumer Act.

“The ACCC expects all businesses to comply with the law and ensure their payment systems and staff are informed of different card types and apply the correct surcharge amounts for each, as it can vary between credit cards and debit cards,” said Keogh.

The commission added that Hyatt hotels in Australia have changed their card payment surcharging practices following the investigation. 

Keogh said that while the Reserve Bank of Australia (RBA) continues its review of surcharges, the ACCC has been actively monitoring business compliance with such laws and has investigated several alleged offences.

The RBA’s review into surcharges is expected to conclude sometime this month.

• This story was originally published on Inside Small Business.