Red Balloon fined by ACCC

Busted for profiting from card surcharges.

Red Balloon, an online trader that sells 'experiences' such as skydiving packages, wine tours and cooking classes, was fined by the Australian Competition and Consumer Commission (ACCC) for profiting from card transactions.

The company paid a fine of $43,200 for overcharging four customers in the first half of 2017.

"Businesses can only pass on to customers what it costs to accept the payment, including fees such as merchant service fees, and terminal rental and maintenance fees," says Dr Michael Schaper, deputy chair of the ACCC.

"The excessive payment surcharges provisions now apply to all businesses, big and small, in Australia."

A ban on excessive card surcharges was placed on large businesses in September 2016, and extended to smaller businesses in September 2017.