Anyone who owns a credit card knows exactly how expensive it is to own one. The “spend-now pay-later” scheme makes it a necessity for individuals who do not have instant cash in their pockets. Users who frequently scratch their plastics are fully aware of the convenience that it brings. However, the downside is the surcharge that is being added to the cost which is somehow becoming a burden to credit card holders. The surcharge is way too expensive, not reasonable and credit card holders are not in favour of this system.
The government in Australia is taking steps against merchants who add way too expensive surcharge that isn’t within reason. While there is a consumer protection law, still there are merchants who take advantage and continue to charge excessive fees. The good news is that the Australian government is refining the regulations regarding credit card surcharge to protect the consumers. The new regulation states that the surcharge shouldn’t be more than the merchants actual cost. The surcharge may not be eliminated immediately, but at least there is a regulation in favor of the consumers that will protect them from paying way too high transaction fees.
Reduced Credit Card Surcharge
It is indeed good news to credit card holders. They can expect surcharge to shrink but not be completely eliminated. It is undeniable that consumers are facing high credit card surcharges but because of the new regulation, consumers can rest assured that these fees will soon decrease. It will give them a chance to save cash and use it for other important purchases.
Credit card holders must be fully aware of the policies implemented by merchants before they sign the application and agreement. Consumers often forget to read the fine prints, policies, etc and care much about the credit limit and interest rates. Don’t be afraid to ask about the fees, charges and other extra payments that can be added to your credit card bill. In the end, it is you who will shoulder the bill.
It is their responsibility to explain the fees that the consumer must pay, terms and condition and any other rules that the card holder must be aware of. Most of the time, consumers are only concerned with the interest rates that they are going to pay whenever they fail or miss a payment. Being aware of the transaction fee and surcharges is also important especially if you swipe it too frequently.