The Australian Competition and Consumer Commission (ACCC) is urging businesses to review their card payment surcharges to ensure they align with the actual cost of accepting card payments.
Businesses must also disclose any surcharges upfront, allowing customers to make informed decisions before paying for goods or services.
Misleading surcharges and add-on costs are a compliance priority for the ACCC in the 2025-26 financial year.
“Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,” said Mick Keogh, ACCC Deputy Chair, said.
Under Australian Consumer Law, businesses are prohibited from misleading customers about pricing, and the Competition and Consumer Act forbids excessive card payment surcharges. A surcharge is deemed excessive if it exceeds the business’s ‘cost of acceptance.’
For instance, if the cost of accepting a Visa credit card is 1 per cent, the business can only charge a 1 per cent surcharge on Visa credit card payments.
The ACCC has launched an education and compliance campaign aimed at helping businesses, particularly small businesses, meet their legal obligations.
This includes updated guidance materials, advertisements, and engagement with industry representatives to assist in compliance.
The ACCC will monitor compliance and may take enforcement action if necessary.
“We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business. However, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers,” Keogh said.
“It is important for small businesses to ensure they understand their obligations and check their costs of acceptance to know what amounts they can legally charge their customers as a payment surcharge, as well as reviewing how they inform customers of their prices, including any applicable surcharges.”
Businesses may also consult their bank, payment facilitator, accountant, or business advisor for assistance.