Discount supermarket chain, Aldi, has agreed to improve signage and other point of sale communication about the disclosure of credit card surcharges in its stores following action by the Australian Securities and Investments Commission (ASIC).
ASIC was concerned that Aldi did not consistently disclose in all of its stores that there is a 0.5 per cent surcharge for consumers paying by credit card, and specifically disclose that transactions made using ‘tap and go’ contactless payment systems are also subject to the 0.5 per cent surcharge, which applies in Aldi stores where either a credit card or debit card is used.
Under the Australian Securities and Investments Commission Act 2001 (ASIC Act), a failure to adequately disclose surcharges, or creating the impression that surcharges do not apply, may be misleading or deceptive.
An ASIC review of signage in a select number of Aldi supermarkets found that the 0.5 per cent credit card surcharge was disclosed in some stores by a sign above the registers and, in others, by a sticker at the registers. In two stores, there were no signs or stickers.
For credit card payments where a PIN or signature is used, disclosure of the 0.5 per cent surcharge is made on the credit card terminal screen after customers insert or swipe their card to pay for their purchase.
ASIC considered that this was too late, particularly in stores where there was no other disclosure and was also concerned that for all contactless payment transactions, which are currently treated as credit card transactions for all merchants, there was no specific disclosure at all in Aldi stores that these transactions also attract the 0.5 per cent surcharge irrespective of whether customers used a debit or credit card.
“Merchants need to be transparent about fees and charges where credit card surcharges apply so that consumers can consider using other payment methods without any additional costs. For example, at Aldi stores, payment by EFTPOS by selecting the ‘savings’ or ‘cheque’ option does not attract a surcharge,” Peter Kell, deputy chairman, ASIC, said.
“Consumers should also be mindful that payments by contactless or ‘tap and go’ cards are currently treated as credit card transactions, meaning that fees may apply where there are surcharges in place, even where they are using a debit card. We urge merchants to ensure consumers are aware of any surcharges that may apply for payments using these cards,” Kell said.
In response to ASIC’s concerns, Aldi will introduce a number of measures to improve disclosure of the surcharge across all of its stores, including improved signage in stores (including at the entrance to the store and at the registers), and further educating its cashiers to communicate the surcharge to customers before finalisation of the transaction.
