Ban on excessive EFTPOS, credit card surcharges comes into effect

Businesses across Australia are now banned from charging customers excessive surcharges for using EFTPOS.

A debit card being swiped through an EFTPOS machine in Canberra Source: AAP

The excessive surcharging ban has applied to large businesses since September last year and now extends to all businesses that are either based in Australia or use an Australian bank.

The ban restricts the amount a business can charge customers for using EFTPOS, MasterCard, Visa and American Express cards issued by Australian banks.

Australian Competition and Consumer Commission deputy chair Dr Michael Schaper said the only costs businesses can add on are external charges from their financial provider.

"The good news for consumers is that businesses can now only surcharge what it actually costs them to process card payments, including bank fees and terminal costs," he said.