The real cost of using digital wallets; secret surcharges that sting customers revealed

Apple pay and android wallet have made it increasingly easy to pay for things on the go but the trend could sting you in the long run.

Apple pay and android wallet have made it increasingly easy to pay for things on the go with the days of overstuffed wallets and carrying wads of cash far behind us.

However, the digital wallet trend could sting you in the long run, with hidden surcharge fees getting more and more expensive and creative than ever before.

One digital wallet user based in Brisbane was stung with a whopping 10 per cent venue surcharge as well as a payment service fee on a night out to a city restaurant.

His night out to enjoy Mexican food soon ended up costing him $7 extra in surcharges, money he said was valuable during a cost of living crisis.

Receipts from the restaurant show surcharges and fees totalling more than $7.

Businesses can charge customers who use cards and digital payment methods with a surcharge fee, but according the Australian Competition and Consumer Commission (ACCC), the surcharge can’t be greater than what it costs the business to use that payment type.

A recent study by the Commonwealth Bank of Australia showed a 90 per cent increase in the number of monthly digital wallet transactions between March 2020 and March 2021.

Compare the Market’s Chris Ford said an increasing number of businesses have been known to charge customers a venue surcharge fee when using a digital wallet payment method.

“The ACCC has banned excessive payment surcharges so certain rules apply, the surcharge can only include costs that are for accepting that payment method,” Mr Ford said.

“It isn’t unlawful for a business to refuse cash payment – that is money the business is potentially missing out on.”