ACCC Cracks Down on Excessive Card Surcharges Amid Rising Complaints

The regulator can fine businesses up to $50,000 for overcharging consumers.

An image of a Brisbane City Council parking payment machine—with a notice about card surcharges—under King George Square in Brisbane CBD, Australia on Dec. 7, 2024. Daniel Y. Teng/The Epoch Times

The Australian Competition and Consumer Commission (ACCC) has warned businesses that excessive card surcharges will no longer go unchecked, following a surge in public complaints.

“From coffee to groceries, consumers are feeling the pinch of inflated fees added to everyday purchases,” said ACCC Chief Gina Cass-Gottlieb, as she announced a stronger focus on enforcement.

ACCC has received numerous complaints about card payment surcharges, with businesses potentially charging customers more than necessary.

“Our work will focus on increasing business compliance with the excessive card payment surcharging prohibition and improving pricing practices to ensure all add-on costs are appropriately disclosed,” Cass-Gottlieb said at an economic development committee in Sydney on Feb. 20.

Penalties for Non-Compliance

Cass-Gottlieb said that while small businesses, like local cafes, may not face court action, they could still face infringement notices with fines up to $50,000 (US$31,700).

In addition to fines, the ACCC may also publicly name and shame businesses that continue to overcharge.

“We have a range of possible interventions, starting with good education,” Cass-Gottlieb said.

Government Response and Increased Funding

This comes as the government allocated an additional $2.1 million in funding to the ACCC in October 2024 to target excessive surcharges, as part of a broader push to ease cost-of-living pressures.

Treasurer Jim Chalmers highlighted that this effort aims to reduce hidden costs for consumers and small businesses.

“This is all about getting a better deal for consumers, reducing costs for small businesses, and promoting a more competitive payment system,” he said.

Assistant Treasurer Stephen Jones echoed this sentiment, stating, “The surcharges pile up and punch a big hole in the wallets of customers and the takings of small business owners.”

The proposed ban on debit card surcharges could take effect by January 2026, aligning with the Reserve Bank of Australia’s review of merchant payment costs.

ACCC Outlines Priorities

Looking ahead, the ACCC plans to address misleading pricing practices in supermarkets and aviation sectors, both of which have come under scrutiny over rising prices and competition concerns.

A report from the commission’s supermarket inquiry is set to be delivered by the government by the end of February.

Cass-Gottlieb said consumers continue to be concerned about misleading “was-now” pricing, which often creates the illusion of discounts.

In the meantime, the commission recently proposed approving an alliance between Virgin Australia and Qatar Airways, citing a lack of competition in the aviation sector as a key factor.

It will also examine misleading practices in retail and essential services like energy and telecommunications such as unfair contract terms, harmful cancellation policies, and automatic renewals.

The regulator will focus on consumer safety in the digital economy, addressing deceptive advertising, unsafe products, and subscription traps.

AAP contributed to this article.