The whole surcharging thing remains a mystery to the lab rats and microbes. It's big. To date it seems that "1c/1000 point" payees "knew too much" as the Reserve Bank, US Feds and even silly Fos people poked around the MERCHANT side while AFF'ers ran around to help Amex recruit Merchants on terms that the RBA and many others were looking at
As reported in the Eyre Peninsula News in March 2013:
Visa and American Express have become the first credit card companies to restrict surcharges for payments
under new Reserve Bank regulations. But it is not clear how many merchants will adhere to the requirements.
The companies said they would require retailers to limit their surcharges to what it ''reasonably costs'' them to accept their cards.
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''.
Visa's regulations, which came into effect on Monday, will require merchants to disclose their surcharge before a sale is completed.
Chief executive of eftpos provider Tyro Payments Jost Stollmann said consumers could save $350 million a year if all providers implemented the regulations.
It is understood most surcharges and fees imposed by merchants would be subject to the Reserve guidance. Reserve Bank data shows the average cost for retailers accepting
Visa and MasterCard is about 0.87 per cent, and about 1.84 per cent for American Express.
Consumer advocacy group Choice, which had been campaigning for the regulations, said it was too early to tell of their impact.
Its head of campaigns, Matt Levey, said: ''The proof now will be on whether some of the highest surcharges - particularly the airlines and the taxi industry - start to reduce their fees as a result of these changes.
''We are optimistic but it remains to be seen how soon [others act] and whether some merchants
try and get around this by applying surcharges under another name.''
Australian Retailers Association chief executive Russell Zimmerman said surcharging was not a feature of bricks-and-mortar retailers and was more heavily used by airlines and taxis. They have been accused of issuing
excessive surcharges, but Qantas and Cabcharge deny this.
A Cabcharge spokesman said the company would not lower its 10 per cent surcharge, calling it a ''service fee'' that would fall outside the Reserve's regulations.
Qantas said claims it profited from surcharges were wrong.
with John Collett
