Visa to outlaw hefty card fees

Discussion in 'Newsstand' started by GoodBoy, Mar 17, 2013.

  1. Visa to outlaw hefty card fees
    • From:AAP
    • March 18, 2013 9:07AM
    Visa has agreed to enforce new rules banning retailers from slapping on hefty credit card fees. Source: AAP
    HEFTY credit card surcharges could be on the way out after Visa became the first company to ban Australian retailers from slapping on the fees.
    New rules come into force on Monday, which Visa says it will use to restrict surcharges to as little as one per cent.
    Among the biggest culprits accused of using surcharges as a revenue source are taxi companies, who place a 10 per cent surcharge on customers who pay with their credit card.
    Airlines and large retailers with market power have also been accused by consumer group Choice of over-the-top fees.
    However independent eftpos provider Tyro Payments says the major banks were also to blame, imposing unnecessary fees on struggling small retailers, who then pass the costs onto customers.
    "The truth is many small businesses are being forced to fund the lucrative loyalty programs of the major banks, by absorbing these costs," Tyro spokesman Mr Jost Stollmann said in a statement.
    If MasterCard, AMEX and Diners Club follow Visa's suit it would save Australian consumers an estimated $350 million a year based on spending on card transactions last year, Mr Stollmann said.

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