The move by the Federal Government to adopt a so-called ‘fair dinkum’ test that will ensure customers aren’t ripped off by excessive credit card surcharges has been welcomed by a leading financial industry body. The Finance Brokers Association of Australia (FBAA) says banks and credit card institutions have been gouging customers for too long, and applauded the Turnbull Government for taking on the recommendation of the Murray Review in to the financial system.
FBAA Chief Executive Officer Peter White is pleased his lobbying and continued consultation with federal ministers and banking regulators have helped provide an outcome to benefit the economy’s most important stakeholder, the buying customer.
“Apart from the outrageous interest rates on cards, the extra impost of a two or three per cent surcharge for using a card at the checkout was plain robbery. I have even heard of some cards incurring a ten per cent surcharge fee.”
Mr White said Treasurer Scott Morrison and his team have got the ‘fair dinkum’ test about right which will see laws put in place to ban merchants from imposing unfair surcharges which are greater to them than the cost of accepting payment by card.
“At the end of the day, the seller has to be upfront and honest about the real cost of a product and what they are actually absorbing and passing on. Our figures show the real cost to them is around half-a-per cent and that represents a considerable saving to a card user.”
The FBAA also welcomed the Government’s positive response to a Payments System Board, designed to address problems with bank interchange fees and provide clarity around what constitutes excessive customer surcharges on card payments.
Media Contacts: Ben Dobson – 0434 791 084