The story so far
We're forking out an estimated $800 million in credit card surcharges each year, mostly to airlines. That means Australian households pay $100 a year just in surcharges! It's time to end the rip-offs.
The RBA weighed in on surcharging in March 2013 to cap how much companies can charge you for processing a credit card payment. And that fee should only be what it costs them to accept the payment. But we're still seeing sky-high surcharges.
We want companies to play by the rules. And for regulators to have the power to crack down on those who don't.
Our recent investigation backs this up. Airline mark-ups on the average cost of processing payments as at January 2014 were:
- Qantas 339% for a $197 ticket
- Virgin Australia 412% for a $185.70 ticket
- Jetstar 2312% for an $87 ticket
- Tigerair 1479% for a $132.90 ticket
Credit card payments cost more for most businesses to accept than EFTPOS or debit cards. So a 2003 ruling allowed them to add surcharges for customers to cover admin costs.
But you're now paying a lot more than what the banks charge companies to process the payments. That’s why we’re calling on companies to play by the RBA's rules and charge a fair surcharge.