The hidden fees of 'tap and go' making your transactions more expensive
Love paying with 'tap and go' on your card? You might be getting slugged with hidden fees you don't know about.
Last year, Australians made 350 million debit card transactions every month, but these transactions come at an extra cost.
Pay Wave and Pay Pass functions utilise the Visa and Mastercard networks and are treated like a credit card transaction.
"While some retailers absorb the costs, others pass it on to credit card customers and now tap and go customers using debit cards," Kristy Lamont from Mozo Comparison website said.
Aldi adds a half a per cent surchage on both tap and go credit and debit transactions.
Using debit cards at Westfield car parks will attract a 2.5 per cent surcharge.
Among the worst offenders are Cabcharge, who slug travellers an additional 10 per cent.
Contactless transactions can also be delayed, because retailers will often bundle smaller transactions together to reduce the cost, processing them sometimes days after the purchase.
If you are worried you are going to get slugged a fee then simply ask the retailer or swipe your card and select savings or cheque.
From September 1, debit card surcharges will drop from 12 to 8 cents per transaction.
When retailers will only be allowed to pass on the true cost to the customer.
News break – June 22
