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Category: Consumer Finance / Federal Government / Government and Politics / Banking

Airlines, taxis charging excessive credit card fees face crackdown

Monday, 22 Feb 2016 11:27:22 | Amy Bainbridge

Customer uses a paywave credit card in store (AAP: David Crosling)

The consumer watchdog has been given new powers to crack down on companies deemed to be slugging their customers with excessive credit card surcharges.

The Senate this morning passed a bill that will give the Australian Competition and Consumer Commission (ACCC) the authority to fine companies who charge their customers big fees for purchases like airfares.

Consumer group Choice said some companies were charging fees 1,000 per cent above the cost of processing credit card payments.

"Airlines, ticketing companies and taxis are among the many businesses that have for years punished consumers who pay with credit cards," Choice spokesman Tom Godfrey said.

"Even when faced with an earlier RBA ban, these corporate profiteers ignored the rule and continued to inflict pain on our hip pockets."

The Government legislation was announced last October and introduced to Parliament in December.

Under the new laws, the ACCC's new powers will allow it to enforce the ban on surcharging and investigate information from those involved in the payments process.

The ACCC will also have the authority to issue infringement notices against those engaging in excessive surcharging, which attracts a fine of up to $108,000 per alleged contravention.

Do you know more about this story? Email investigations@abc.net.au

AustraliaPlus


 

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