The Federal Member for Macarthur, Russell Matheson, has welcome tough new laws that will protect consumers in Macarthur from excessive credit card surcharging.
The Turnbull Government’s Competition and Consumer Amendment (Payment Surcharges) Bill 2015 passed the Senate earlier this week with the ban on excessive card surcharging to take effect this year.
“Card and other electronic payments facilitate billions of transactions every year. It is therefore crucial that Macarthur consumers have confidence in the system,’’ Mr Matheson said.
“Whilst many merchants do pass on costs fairly, some engage in this practice abusively.
“Macarthur consumers are entitled to a fair deal.
“That’s why the Turnbull Government took action to ensure customers are charged no more than the amount that reflects the true cost to the merchant accepting that payment,’’ Mr Matheson said.
The new laws equip the Australian Competition and Consumer Commission (ACCC) with powers to enforce the ban, including the ability to gather information from those involved in the payments process and the authority to issue infringement notices against those engaging in excessive surcharging.
If the ACCC forms the view that a merchant has engaged in excessive surcharging, they may issue an infringement notice, including a penalty for listed corporations of up to 600 penalty units, currently $108,000, for each alleged contravention.
The law is an important step in further implementing the Turnbull Government’s response to the Financial System Inquiry and providing greater protection for consumers.
The ban on excessive surcharging will work in tandem with Reserve Bank of Australia Payments System Board standards that will set the permitted surcharge for payments.
The scheduled commencement for the ban will allow for the RBA consultation process to take place while providing a reasonable period for merchants to prepare for the new arrangements.
For further details visit the Reserve Bank of Australia website here.
