Surcharge Backlash follows Credit Card Fee Reduction

As reported in the smh today, there has been a backlash against surcharges which has come after the Reserve Bank's new regulations restricting the surcharge attached to credit card purchases, began enforcement on Monday.

Consumer watchdog Choice said it was becoming impossible to buy online commodities such as online tickets and airfares for the advertised price, which is often buried under a ''deluge'' of administration and service surcharges. Head of campaigns, Matt Levey, calls it the ''surcharge society''.

Choice is pushing for surcharges to be limited to basic credit card charges and to eradicate surcharge words like ''handling fee''.

Credit card providers impose a charge to retailers for the use of their service but the retailer can add their own charge, which is unregulated. The Reserve Bank's new rule says the card provider can negotiate surcharges with the merchant that should reflect ''reasonable costs''.

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