‘Blatant rip-off’: Tasmanian MP rips into Hobart City Council parking meters

Hobart City Council has been referred to the nation’s consumer watchdog over its minimum charge when using a credit or debit card for parking meter payments.

Molly Grey, 18, is frustrated with the one-hour parking meters in the CBD that cost $2 but the minimum credit card charge is $3. Picture: LUKE BOWDEN

HOBART City Council’s decision to impose a $3 minimum charge when using a credit or debit card for parking meter payments has been referred to the nation’s consumer watchdog.

The payment mechanism has been referred to the Australian Competition and Consumer Commission by Tasmanian independent MP for Denison Andrew Wilkie. The commission has been asked to investigate whether it breaches the Competition and Consumer Amendment (Payment Surcharges) Act 2016.

But Hobart City Council says it is absorbing a large portion of fees associated with using credit cards on unsecure devices such as parking meters and saving motorists money.

Credit card users are charged a minimum of $3 regardless of the parking time required or used.

Molly Grey, 18, says we now live in a cashless society and it is unfair to be slugged $3 for a 10-minute park if you use a credit card.

“It’s a rip-off,” she said.

“If you’re doing that every day that’s $21 a week.”

Hobart City Council general manager Nick Heath argues that credit card payments in unsecured devices such as parking meters attract a range of fees including gateway charges, banking transaction and commission fees.

“These fees are quite significant and well in excess of the normal credit card commission rates charged in shops and other businesses that operate through secure EFTPOS terminals,” he said.

Tasmanian independent MP Andrew Wilkie. Picture: LUKE BOWDEN

Mr Heath said the minimum $3 charge was consistent with the Australian Competition and Consumer Commission guidelines.

But Mr Wilkie said the council’s decision was “unconscionable” and a “blatant rip-off”.

“Consider the driver on a short park, say 15 minutes,” he said.

“For the cash payer it’s a 50c charge while the card user still must pay $3. It still appears that the gross charges being placed on consumers are excessive and inconsistent with the federal law banning gouging on credit card fees.

“If indeed the council is being subject to all of the fees it lists then the new dimension to this is that the council has signed up to woefully unsatisfactory terms and conditions with its service providers.”

On its website, the ACCC says a business is not required to impose a payment surcharge, but “if it chooses to then it is only allowed to pass on to the customer the costs that the business was charged for accepting payment of that payment type”.

The same $3 minimum charge has been in place at council carpark spaces at Dunn Place, Condell Place, Lefroy Street, and Queens Domain for the past four years.

The parking meters offer multiple payment options including coins, credit cards, and the recent rollout of the EasyPark app allows users to pay via their smartphone.