In response to Adam from New South Wales, who inquired about the legality of surcharging for card payments, it’s confirmed that businesses are permitted to charge fees for card transactions without the obligation to provide a cash payment option. This practice is legal under Australian law, particularly as the country shifts towards a predominantly cashless society.
While this shift offers convenience – such as tap-and-go payments – it raises concerns regarding privacy and security. The trend towards cashless payments has increased significantly, with cash transactions plummeting from 69% in 2017 to merely 13% in 2022. Recognising potential issues for those unable or unwilling to go cashless, the Australian government plans to enforce a mandate by 2026 requiring businesses selling essential goods to accept cash payments. However, this does not extend to car hire services.
As for surcharges, the Australian Competition and Consumer Commission (ACCC) regulates these fees. They stipulate that a surcharge must only reflect the actual cost to the business of processing the payment, and must not incorporate additional unrelated costs. Common surcharges are generally set between 0.5% to 1.5% of the transaction amount. Businesses must ensure consumers are made aware of any surcharges before completing a purchase, and they are required to display the total cost, including surcharges, transparently.
If you feel that the surcharge charged by a business is excessive or if the business has misled you regarding charges, you can raise your concerns with them directly. Should the issue remain unresolved, it’s advisable to contact NSW Fair Trading or lodge a complaint with the ACCC regarding unfair surcharges.
For concerns about cash payment provisions in the car hire industry, you might consider reaching out to the Australian Treasury, which is exploring the implications of cashless payments through public consultations. Engaging with relevant authorities can be an effective way to advocate for inclusion in cash payment regulations, particularly for essential services like car rentals.