Customers annoyed by tap and go fees at the checkout

RESTAURANTS and cafes that are charging flat fees to customers for simply paying by card could be breaking the law.

THE consumer cops have sent a stern warning to customers — if businesses are ripping you off with unfair surcharges, dob them in.

Restaurants, cafes and food stores are among those in the firing line who are charging flat fees to consumers for simply paying by card and be warned — you are breaking the law.

The Australian Competition and Consumer Commission’s deputy chair, Michael Schaper, this week told News Corp businesses needed to stick to new legislation that enforces businesses to only charge consumers the actual cost of a surcharge.

This must be a percentage fee not a flat fee.

Consumers cannot be charged a flat fee for paying by card.

CAUGHT: Red Balloon punished for hitting customers with excessive surcharges

Already 700 warning letters had been issued to businesses who may be breaking the law Mr Schaper.

“With flat fees where you want to use Eftpos or credit card and it’s 50 cents extra or even 10 cents for a cup of coffee,’’ he said.

“Strictly speak no (they cannot do that), you have to charge someone a percentage and a relevant percentage.”

Merchants cannot add a surcharge that is greater than what it costs to accept a payment by credit card or debit card — this is usually between 0.5 and 3 per cent.

The RBA indicated the costs to merchants of accepting payment by debit cards is about 0.5 per cent, by credit card 1-1.5 per cent and for American Express cards around 2-3 per cent.

More than 700 retailers are being hit with warnings about unfairly charging surcharges.

These changes have applied to big business from September 2016 and followed on to all other business in September last year.

But new figures shows thousands of concerned consumers are concerned about excessive charges for paying by card including using “tap and go” at the checkout.

The ACCC has received more than 2150 queries about surcharging since September last year — this is on top of 3564 queries in the 12 months prior.

SURCHARGES: Complaints on the increase for customers hit by surcharges

Online trader Red Balloon was fined $43,200 by the ACCC for overcharging customers’ surcharges last year.

Naomi Simson’s business Red Balloon was fined by the ACCC for overcharging.

Consumer group Choice’s spokesman Tom Godfrey warned businesses to “stop ripping off their consumers”.

“Whether you’re buying your morning coffee or grabbing lunch, if you pay with a card a business can’t tap you with an excessive surcharge,’’ he said.

“The surcharging rules are clear, businesses can recover costs, they can’t clip the ticket.”

Businesses can also absorb the surcharging costs if they don’t charge a percentage fee.

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