From the 1st of January, merchants will no longer have the opportunity to charge excessive merchant fees on purchases.
Merchants must lower the fee that actually covers the reasonable cost of accepting the card.
With the RBA rule, stores, airlines, taxis and websites will be prohibited from charging excessive curcharges when they use a credit card.
This doesn’t mean that the surcharge will be eliminated, but it simply means that the merchant will need to limit the surcharge on purchases.
Most companies charge a 1-2% charge for using VISA, Mastercard, AMEX and
Companies severely imapacted by the new legislation are Qantas, Cabcharge and Virgin.
Kris Bondin is the Managing Director of Bills to Pay. As a qualified CPA accountant, Kris wanted to make a positive change to people’s lives when it came to their finances.
Bills to Pay was established to help both individuals and families carefully manage their money with the ultimate goal of helping people get to a healthier financial position.