New nationally representative research from CHOICE has revealed 66% of people reported that businesses often apply card surcharges without telling them.
The research also showed more than two thirds (68%) of people do not expect to pay a surcharge when they pay a bill by inserting their debit card.
"CHOICE welcomed the Federal Government's announcement last month that it was prepared to ban surcharges for paying by debit card, and is campaigning to ensure this promise comes to fruition," says CHOICE Head of Policy Tom Abourizk.
"Extra, needless expenses are the last thing people need during a cost-of-living crisis. Paying with your own money, whether it be by debit card or cash, should not come at a cost. We need to change the surcharging rules to stop major companies in the payments sector gouging both consumers and small businesses through card surcharges," says Abourizk.
CHOICE's research also found:
- 88% think that businesses should be required to tell customers the amount of a surcharge
- 83% do not think applying a surcharge for paying by cash is fair
- Only 15% of people think that applying a surcharge for paying by card is fair
"Payments technology is always improving, but the benefits are not being felt by consumers or small businesses. The simple act of paying for a product or service seems to be getting more complicated, and more costly. Card surcharges are becoming increasingly common at the same time that ATMs and bank branches are fewer and far between, making it harder to access cash," says Abourizk.
CHOICE is also calling for the ACCC and state and territory regulators to monitor compliance with existing laws, which already prohibit excessive surcharges, imposing a surcharge where no free payment option exists, and failing to be transparent about surcharges.
"People should be able to trust that the price advertised is the price they'll pay at the checkout. Our research shows that surcharges often catch consumers off guard, and almost 9 in 10 Australians think that businesses should be required to disclose surcharge amounts," says Abourizk.
"A ban on debit card surcharges would provide consumers with one surprise-free way to pay, but all excessive surcharges need to be addressed. With modern technology, it doesn't make sense for any kind of card payment, for any value, to cost consumers or businesses extra dollars," says Abourizk.
Sign the petition for a fair way to pay: https://action.choice.com.au/page/161644/petition/1
Editor's notes:
CHOICE Consumer Pulse September 2024 is based on an online survey designed and analysed by CHOICE. 1,024 Australian households responded to the survey with quotas applied to ensure coverage across all age groups, genders and locations in each state and territory across metropolitan and regional areas. The data was weighted to ensure it is representative of the Australian population based on the 2021 ABS Census data. Fieldwork was conducted from the 5th to the 18th of September, 2024.
Stock images: Getty, unless otherwise stated.
