Best Finance Deals, Credit Card, personal loan, car loan, home loan Victoria, Sydney, qld - Australia

Some tips
If you are thinking of paying by credit card, always check whether there will be an extra charge.

There is no requirement for such a fee to be charged and it is expected that many merchants will not charge one. However, where a merchant does charge a fee it will be up to them to determine the amount of that fee, and different merchants may charge different fees.

What can you do if a merchant does charge a fee?

• You could always agree to pay any fee.
• You could choose to pay by other means such as cash or EFTPOS.
• If you are paying a bill, you could pay by cheque or use internet or telephone banking to make the payment from your transaction/savings account.
  Your financial institution can tell you how to use EFTPOS, internet and telephone banking. The EFT Code of conduct provides protections for consumers who undertake electronic banking.
• You could take your business elsewhere, if there are appropriate competitors around who don’t charge such fees.
• If you don’t have the money at the time but don’t want to pay the fee or shop elsewhere, you could also consider lay-buying the goods in some instances.
• If all of the merchants you have access to for a particular good or service charge a fee and you still want to pay by credit card, compare the fees to see which merchant will charge the least.
• Don’t forget recurring debits linked to your credit card, such as for mobile phones, internet or gym fees. If the merchant that direct debits your account introduces a credit card fee, you might find it less costly to have the direct debit linked to your transaction account instead. If you do this, however, you should be confident that you will always have the money in your account to cover the cost, as heavy fees can apply if you don’t have the funds in your account. See our advice on direct debits on this FIDO website or call Infoline for a copy of it on 1300 300 630.

If a merchant does impose a credit card fee, they should make sure that you are aware that there will be an extra charge, and how much it will be (expressed in either dollars or as a percentage), so that you can decide whether to pay by credit card before you enter into the transaction.

Merchants may use a variety of means to inform you if they are charging a credit card fee, including prominent in-store and point-of-sale signage, and prominent messages on bills and the internet. Ideally, they may even let you know through their advertisements and promotional tools. From 1 January 2003 you should be on the look out for such notices. We have also published advice to merchants about informing consumers about any credit card fees. This is also available through our Infoline on 1300 300 630.

If you are not sure whether a merchant charges a credit card fee, ask them before you purchase. Also, remember to read bills carefully to see if there will be an extra fee for paying by credit card.

If merchants tell you that they are required by law to charge you a credit card fee, they are misleading you.

Finally, remember that it is also possible that a single merchant may apply different policies to different goods or services or to different credit or charge cards.

Why has the change happened?
The change which allows merchants to charge extra for credit card payments is part of a package of reforms introduced by the Reserve Bank of Australia that aims to promote greater efficiency, transparency and competition within the credit card network, for the benefit of all Australians.