The Australian Competition and Consumer Commission (ACCC) has issued a reminder for businesses to review their card payment surcharges to ensure they reflect the actual costs of accepting card payments. This initiative is part of the ACCC's compliance and enforcement priorities for the 2025-26 financial year, focusing on misleading surcharging practices and other add-on costs.

ACCC Deputy Chair Mick Keogh emphasized the importance of transparency, stating that businesses must inform customers about any card payment surcharges before they make a purchase. The Australian Consumer Law prohibits misleading pricing practices, and the Competition and Consumer Act restricts excessive surcharges, which are defined as those exceeding the business's 'cost of acceptance.'

For instance, if a business incurs a 1% cost for accepting Visa credit card payments, it can only charge a surcharge of up to 1% to customers. To assist businesses, particularly small ones, the ACCC has launched an education and compliance campaign that includes advertisements and updated guidance materials.

The ACCC is also engaging with industry representatives to support small businesses in understanding their legal obligations. Active monitoring of compliance will be conducted, and the ACCC may take enforcement actions as necessary. Keogh noted that excessive surcharges and lack of upfront pricing can lead to customer loss for small businesses.

Businesses are encouraged to verify their 'cost of acceptance' and ensure they are charging legally permissible surcharges. The Reserve Bank of Australia has established a standard for calculating these costs, which can vary between businesses. More information is available on the ACCC website, and businesses are advised to consult their banks or payment facilitators for assistance.