Card payment surcharge: How much can businesses charge you [Video]

Companies are allowed to choose what kinds of payments they accept – and they are actually allowed to decline cash.

And if you want to pay by debit or credit card, they can legally charge you extra.

This has been the subject of debate recently.

Excessive surcharges are banned.

However, there are rules, according to the ACCC, which companies must stick to

“Businesses can charge a surcharge for paying by card, but the surcharge must not be more than what it costs the business to use that payment type,” the ACCC says.

“If a business charges a payment surcharge, it must be able to prove the costs it is based on.”

So how much should this be?

As a guide, the Reserve Bank of Australia has estimated average costs for different payment types.

For Eftpos it’s less than half a per cent.

For Visa and Mastercard debit …