Australians pay approximately $800m per annum in credit card surcharges annually, accounting for an average of $100 per Australian household, according to data compiled by Australia-based non-profit consumer organisation, Choice.
The high credit card surcharges, which were mostly reported in airlines, exist even after the implementation of Reserve Bank of Australia’s (RBA) new reforms in March 2013. The reforms are aimed at limiting surcharges to a reasonable cost of transaction.
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According to data by RBA, around 1% for merchants are processing transactions through Visa and MasterCard and are using card fees to raise additional revenue.
An early 2014 survey by Choice found that consumers flying through Qantas from Sydney to Melbourne were still paying surcharges 523% more than the average merchant service fee, similar to the 568% surcharges they were paying back in March 2013.
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