Aldi failed to tell customers about credit card surcharge on Tap and Go contactless payments

ALDI has been caught quietly charging customers a surcharge without telling them via ‘Tap and Go’ contactless payments.

Aldi has failed to consistently disclose to customers its credit card surcharges.

DISCOUNT supermarket Aldi has been caught charging customers extra for using their credit cards, and not telling them.

The German chain has agreed to tell customers about the practice after the corporate watchdog ASIC undertook action against them.

At the heart is the issue Aldi failed to tell customers in all its stores there was a 0.5 per cent surcharge for credit card use. In particular, ASIC found when customers used contactless payment such as ‘Tap and Go’ with their credit cards, it’s never disclosed there is a surcharge.

For a $100 transaction, this would mean an extra 50 cent charge to the total bill.

Debit cards using ‘Tap and Go’ systems also attracted the surcharge.

When a customer used their credit card through an EFTPOS terminal which required a PIN number or, at the time, a signature, the customer would only be told of the surcharge after the transaction had started. ASIC considered this disclosure was too late when there was no other signage in-store.

News_Image_File: Customers using ‘Tap and Go’ payment technology were slugged the surcharge without ever finding out about it in some stores.

Aldi will now introduce improved signage at the entrance to its stores, as well as at the registers. It has also committed to training its staff to let customers know about the surcharge.

ASIC deputy chairman Peter Kell said in a statement: “Merchants need to be transparent about fees and charges where credit card charges apply so that consumers can consider using other payment methods without any additional costs.”

Aldi has been growing its market share in Australia against the duopoly of Coles and Woolworths, attracting customers with its cut-price private label products.

According to Roy Morgan, by the end of 2013, Aldi claimed 10.3 per cent of the market compared to 2.9 per cent at the end of 2005. The company has an annual turnover of over $5 billion locally.