Credit Card Crackdown
Do you charge your customers a percentage when they pay by credit card? You might need to revise your policy if you are charging too much.
An article in Hospitality Magazine says “New rules around credit charge surcharges and the levels merchants can charge came into force today with Visa jumping in as the first credit company to ban excessive credit card fees.
Under the new rules the Reserve Bank of Australia is giving credit card companies the power to force retailers to limit what they can charge consumers to use credit and debit cards.
Retailers will no longer be able to charge up to 4 per cent for a credit card transaction, and will be restricted to as little as 1 per cent.”
Consumer advocate group, Choice, has been campaigning for a review of the surcharge rates for quite a while now, and their surveys show that most people complain about excess charges when paying by credit card for holiday/travel and restaurants/formal dining services.
The issue is not so much about recovering what it costs to process a credit card payment: it is about claiming an excessively high fee so that retailers are profiting on the transaction and pushing consumers further into debt.
How much are you charging at the moment? Do you have a fee policy in place?
More importantly, is it fair? If you were charged this amount when you pay by credit card with another retailer, how would you feel? That’s a pretty clear insight about the fairness of your policy.
Be aware that your charges could be under review by your credit card company. Review your charges now.