The Reserve Bank’s ban on credit card surcharging has come into effect with the Australian Travel Industry Association (ATIA) continuing to raise concerns about the move.
From October 1 businesses can no longer add a surcharge to recover the cost of accepting payments made by Visa, Mastercard or eftpos.
American Express sits outside the Reserve Bank’s regulated framework but has moved separately to prohibit surcharging under its merchant terms from the same date.
ATIA is continuing to press the Reserve Bank on the change and will keep raising the issue as pricing across the payments market plays out.
“We fought this change hard and we will continue to raise our concerns with the evidence the RBA has based its decision on,” said Dean Long, ATIA CEO.
“We took our concerns to the Reserve Bank twice in writing, met with them directly and took the issue to Government and the Opposition, and that pressure bought members an extra three months to prepare.”
To help support members through the changes, ATIA held a webinar and provided a six-part fact sheet series to help them decide what’s right for their own business.
The webinar was one of ATIA’s most successful and provided a practical guide to the pricing practices businesses could consider as well as the key compliance issues to keep in mind. The fact sheets for members available on ATIA’s website cover:
- Overview. How the new rules work, which cards and transactions are affected, and where the surcharge prohibition sits legally.
- Payment processing and fees. Blended versus interchange-plus-plus pricing, least-cost routing, and how to review provider arrangements.
- Service fees. What makes a service fee genuine rather than a surcharge by another name, and when it must be disclosed.
- Payment methods and card acceptance. Lower-cost options such as PayTo and PayID, and direct-to-supplier payment.
- Discounts and payment incentives. Offering a discount for a lower-cost payment method without it operating as a penalty for paying by card.
- Transitional bookings. What applies where a booking was made before 1 October but payment falls due after.
“No two travel businesses are in the same position on payments, so we have focused on providing the tools and information for each member to map the best path forward,” added Mr Long.
“While we’ve lost the fight in terms of the ban being put in place, we will keep pressing the Reserve Bank on the case it used to justify this decision and we’re taking that conversation to members at Beyond Borders.”
