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Australia: Airlines on radar over sky-high card surcharges

By  |  February 22, 2016

Airlines, event ticketing groups and taxi firms are prime targets of new legislation aimed at cracking down on companies that charge their customers excessive surcharge fees for using their credit card.

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    The legislation was passed in the Senate on Monday and gives the national consumer watchdog, the Australian Competition and Consumer Commission, the power to levy large fines on corporate offenders.

    In submissions to the Reserve Bank of Australia, which is in the process of setting what level of card fees merchants will be allowed to charge, Australia’s commercial airlines companies were singled out as being the worst offenders in charging excessive surcharge fees.

    But those days should soon be over, as the ACCC will have the authority to hit airlines with a $108,000 fine for every contravention of the RBA’s fee guidelines.

    The rule changes follow recommendations in the Murray financial system inquiry to overhaul and tighten up the existing credit card surcharge fee laws so consumers could be afforded better protection from fee gougers.

    Full Content: The Sydney Morning Herald

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