Are you being ripped off for using paywave? Customers are warned to watch out for excessive contactless card fees
- Businesses have to fork out expensive fees to process tap-and-go payments
- Some sneaky retailers are passing extra costs of tapping to consumers in secret
- Businesses are allowed to charge consumers fees to cover processing costs
- Customers are urged to report businesses who charge more than they should
Customers are being warned to watch out for excessive contactless card fees.
Businesses have to fork out expensive fees to process tap-and-go payments, charged through their bank.
Some sneaky retailers are passing the extra costs of tapping to consumers without telling them, even though they must be transparent about the charges by law.
Some sneaky retailers are passing the extra costs of tapping to consumers without telling them even though they must be transparent about the charges by law
Businesses may have a 50 cent surcharge for every customer that makes a contactless card payment
Some businesses may have a 50 cent surcharge for every customer that makes a contactless card payment.
For example, supermarket giant ALDI has a 0.5 per cent surcharge for every payPass or payWave transaction, which is perfectly legal.
Some simply increase the cost of goods throughout the store to cover costs.
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Many assume flat-rate surcharges are illegal but some retailers are given a flat processing cost for each tap-and-go fee.
Customers 'could be getting hit with unfair surcharges if retailers are doing the wrong thing', financial comparison website RateCity's spokeswoman Sally Tindall told News Corp Australia.
Excessive fees can be avoided by swiping or inserting the card with a pin or by paying with cash.
Consumers who suspect businesses are charging fees higher than they should be should complain to the ACCC
Although businesses have a right to charge customers for tap-and-go payments, they cannot profit off the charges, according the Australian Competition and Consumer Commission (ACCC) deputy chairman Dr Michael Schaper.
Consumers who suspect businesses are charging fees higher than they should be should complain to the ACCC.
The ACCC had already issued and infringement notice to a retailer for charging than they should.
