Payments News

Australia Officially Bans Excessive Credit Surcharges

Sep 01, 2017
Australia has officially closed a legal loophole such that as of today, it is no longer legal to charge a credit card surcharge that is higher than the cost of taking the payment itself.  That adds up to about a 1.5 percent interchange fee for Visa or Mastercard, or just 0.5 percent for a debit card.

The change comes after a law banning “excessive” credit card surcharges was put into place last year, shortly after it became public knowledge that that Australians were paying out $1.6 billion in surcharges per year. Airlines were generally the worst offenders nationally — travelers were getting dinged with card fees in the range of $10, or about 17 percent of a cheaper flight price.

Read the full article:
http://www.pymnts.com/news/regulation/2017/australia-officially-bans-excessive-credit-surcharges/