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ARTICLE · 30 SEPTEMBER 2024

Complying With Requirements When Receiving Credit Card Payments From Clients

Sophie Grace Pty Ltd
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Businesses should take the necessary steps in order to comply with the regime.

AustraliaFinance and Banking
Sophie Gerber
Sophie Gerber
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Businesses in Australia are prohibited from charging excessive payment surcharges for certain payment methods including Visa and MasterCard credit and debit cards and EFTPOS.

Introduction

Businesses can only pass on to the customer what it costs them to process a payment (also known as the 'cost of acceptance'). In most cases, the permissible level a business can charge a customer for processing payments will be no greater than the amount the business has been charged by their bank.

A payment surcharge is considered excessive if it exceeds the 'cost of acceptance'.

How to Comply

Where a business decides it wishes to impose a payment surcharge, it should take the necessary steps in order to comply with the regime. Download our Payments Checklist for a step by step guide on how you remain compliant with the regime.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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