You’re doing well but there’s always room for improvement. If the business also chooses to display prices without including the minimum surcharge payable, then these amounts must not be displayed more prominently than the prices including the minimum surcharge.īusinesses also need to make sure that any higher surcharges for other card types are clearly displayed.We’ve talked about it before – One of the most important success factors of any business is funding and cash flow! Perhaps you’ve set in place the perfect plan of action for your business - Sales are good (but more sales are always helpful), and expenses are kept to the absolute essentials. The business also cannot display its price as ‘$5 (payment surcharges apply)’, because it is unclear to consumers what the price of the payment surcharge will be. The $5.15 price must be clear and stand out so a consumer can easily notice it as much as any statement of the $5 price. If the business chooses to display the $5 price, the business must also show the full price of $5.15. For example, if the lowest possible surcharge was a 15 cent debit card surcharge, the price displayed for the coffee should be $5.15. In this scenario, a consumer cannot actually purchase the coffee for $5. Businesses need to calculate these costs themselves.Įxample of how to display a price where payment without a surcharge isn't availableĪ business charges $5 for a coffee, does not accept cash, and all card payment methods are surcharged. These include costs paid to providers other than their bank or payment facilitator, such as gateway fees, terminal fees, fraud prevention costs and costs of specific types of insurance. There may be some additional costs that don’t appear on these statements which businesses may include in their surcharges. It may also include other fees the bank or payment facilitator passes on to the business for processing card transactions.īusinesses should contact their bank or payment facilitator, or the Reserve Bank of Australia, if there are issues obtaining these statements. This figure will generally include service fees, costs for card terminal rental and maintenance. These should include the business’s average percentage cost of accepting each payment type. Business costs of accepting paymentsīusinesses receive monthly and annual statements from their bank or payment facilitator. The Reserve Bank of Australia sets out the costs that businesses can include when determining their reasonable costs of accepting payment types.īefore introducing a payment surcharge, businesses should read our Payment surcharges guide and the Reserve Bank of Australia guidance material. taxi fare payments to the relevant state or territory taxi industry regulator.BPAY, PayPal, Diners Club and American Express payments to the relevant BPAY, PayPal, Diners Club or American Express system. American Express cards issued directly by American ExpressĬoncerns about a surcharge that isn't covered by the ban can be reported. Report:.This ban on excessive payment surcharges applies to: Whatever the surcharge amount, the business must be able to prove the costs they used to calculate it.įees that aren’t called surcharges, but really areĪ business can’t escape the ban by calling a payment surcharge something else.įor example, if a business charges a service fee or handling fee that only applies to some payment methods, this is probably a payment surcharge by another name, so the ban on excessive surcharges applies. Small businesses usually have higher processing costs than large businesses. How much it costs a business to process a payment depends on the size of the business, the technology used, and the payment method. For example, if a business pays an amount for gateway fees for processing credit card transactions only, the business cannot include this cost in its debit card transactions. the surcharge can only include costs that are for accepting that particular payment.
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