Hidden Costs: Understanding Card Surcharges and Their Impact on Consumers

Card surcharges in Australia have become ubiquitous due to the increased use of credit and debit cards over cash, accelerated by the pandemic. Often these fees are not clearly communicated to consumers and can vary widely, leading to billions in additional costs. Regulatory bodies are now scrutinizing these practices.

Melbourne, Sep 4 (The Conversation) – When you pay at a cafe, you may notice an unexpected surcharge on your receipt. This extra fee is due to the use of a credit or debit card, an increasingly common practice influenced by the pandemic.

National Australia Bank chief executive Andrew Irvine criticized this lack of transparency during a recent parliamentary inquiry into bank charges, highlighting a 10% surcharge he encountered at a Sydney café.

Regulatory bodies like the ACCC require merchants to justify these charges, which collectively cost Australians billions. Some countries have banned or regulated such surcharges to protect consumers.

(With inputs from agencies.)