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Revealed: How using paywave could be costing you more

Consumers are being warned to pay attention to fees that might be getting illegally tacked onto payments when they use contactless forms of paying, like payWave or PayPass.

While businesses have permission to charge a bit extra for “tap and go” payments due to the fees incurred by offering the service, the law prohibits them from making profit by doing so.

According to the Australian Competition and Consumer Commission (ACCC), businesses must be transparent about extra charges that could be applied if a customer chooses to use a contactless form of payment.

Unfortunately for consumers however, businesses don’t always adhere to the rules, according to RateCity spokeswoman Sally Tindall.

Business might not be sticking to the rules when it comes to charging fair fees. Source: AAP/File
Business might not be sticking to the rules when it comes to charging fair fees. Source: AAP/File

“(Consumers) could be getting hit with unfair surcharges if retailers are doing the wrong thing,” Ms Tindall told Herald Sun.

Often surcharges on cards are wiped or reduced if they are used the old fashioned way, via swiping or inserting it.

She urged consumers not to use contactless payments if they knew it would incur a surcharge, instead she encouraged people to pay using eftpos or cash.

“A lot of surcharges can be avoided with a bit of planning, always have a little bit of cash with you up your sleeve,” Ms Tindall said.

Experts warn customers could be unknowingly paying unfair fees on their contactless payments. Source: AAP
Experts warn customers could be unknowingly paying unfair fees on their contactless payments. Source: AAP

The ACCC’s deputy chair Mick Keogh said businesses were allowed to charge a flat fee for contactless payments, however it must not exceed what it costed the business to process the transaction.

“Businesses should be careful about imposing a flat fee surcharge where the amount of a transaction is relatively small…In those circumstances the surcharge is likely to be excessive,” Mr Keogh said.

If consumers suspect a business has broken the rules, they can file a complaint with the ACCC.

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