Credit Card companies were making own rules at one point
Yucca Valley, CA -- (SBWIRE) -- 08/20/2012 -- The Reserve Bank of Australia has taken notice of the hefty credit card surcharges levied onto consumers by the merchants. The merchants have just four months left of charging heavy costs to the credit card users, as it will be taken care of after that.
The focus was mainly on airlines, retailers and taxi companies who will be asked to mend their ways under new law while the merchants will be advised to charge fees, which is “the reasonable cost of card acceptance.”
According to the heraldsun.com.au, Consumer Group Choice Head of Campaigns, Matt Levey said that he is very hopeful that these amendments will take the burden off of the consumers, who are charged with heavy fees for using credit cards.
"We'll be very keen to see some of those notorious surcharges brought back down to earth after January 1,'' he said.
"But between now and January 1, Aussie consumers are still going to have to put up with paying too much to use credit cards,'' Levey added.
The Reserve bank of Australia took notice of heavy charges that were put on the consumers for the use of their plastic card. They found that the usual surcharge for MasterCard credit cards was 1.8 percent, for Visa it was 1.9 percent, American Express was 2.9 percent while Diners Club was 4 percent.
It was also noticed that Virgin Australia charges a minimum of $ 4.50 for the booking of domestic flights. In response to that, a spokesperson of the Virgin Australia said, “Our card fee has been designed to be a flat uniform fee for all guests.”
“It includes an 'averaged' level to cover variations between the merchant fees of various credit card companies and other payment processing costs we incur,'' he added.
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