Australian businesses can no longer add surcharges to payments made with the country’s major credit, debit and prepaid card networks, under rules that took effect on October 1.
The prohibition covers Visa, Mastercard, American Express and eftpos transactions. It applies to a fee imposed because the customer selected one of those card payment methods, removing the familiar practice of passing merchant costs through as a separate percentage or fixed charge at checkout.
The change does not prohibit every additional fee. Businesses may still impose charges that are independent of the payment method, including weekend or public-holiday surcharges in hospitality, service charges and booking fees. Australian consumer law continues to require the total price and accepted payment methods to be presented clearly.
The Australian Competition and Consumer Commission is responsible for enforcing the Competition and Consumer Act and the Australian Consumer Law. It can use reports from customers and businesses to guide compliance and enforcement work, although it does not resolve individual disputes.
For merchants, the practical distinction is now the reason for the charge: a fee attached to use of a covered card is barred, while a genuinely separate service or trading-condition fee may remain lawful if it is accurately disclosed.
