How to avoid credit card surcharges at the checkout
The Reserve Bank has announced credit card surcharges will be abolished in October, meaning you won’t pay any more for your takeaway coffee, grocery purchases or fast food orders if you choose to use a credit card or tap your phone.
But did you even notice you were paying them, and how much they have been costing you?
Credit card surcharges will be scrapped in October. iStock
Current credit card surcharges mean a $5 coffee costs 7 to 15 cents extra for that flat white.
Aldi adds a credit card surcharge to its purchases as well, whereas larger retailers like Coles and Woolworths already absorb the cost of using credit cards into their current prices.
With fast food retailers, it can depend on the location, while most cafés do charge a credit card surcharge.
Today Money Expert Joel Gibson told nine.com.au consumers can expect price hikes in October when the surcharge ends, as smaller businesses attempt to absorb the cost of operating credit card facilities at their businesses.
“It won’t make much difference to the prices of your groceries at Coles and Woolworths, but smaller businesses are saying they might have to increase our prices if they can’t add it at the point of sale,” Gibson said.
“Some prices will go up slightly, some won’t budge at all.
“You’ll actually, in effect, get a price cut because you won’t be paying the surcharge, while some prices increase to cover the cost.
“It will be a real mixed bag.”
The only ways to avoid paying them is to use a debit card or to pay cash.
Still, customers have between now and October to deal with credit card surcharges, and by avoiding them for the next three months, there are real savings to be had.
For the former, that means inserting your debit card into the card reader, choosing your “cheque” or “savings” account and entering your PIN.
Unfortunately, not all businesses offer the option to insert debit cards and they are meant to accept cash.
While the amount of money may seem small, credit card surcharges do add up.
Avoiding surcharges can be a little fiddly, but worth it in the long run. iStock
For example, if you pay a credit card surcharge of 7-15 cents for your flat white three times a week between now and October, that’s over $25 in surcharges, which would cover an additional five flat whites.
So avoiding them is definitely worth the effort.
