Following two recent actions by the ACCC against travel businesses for allegedly excessive credit and debit card payment surcharges, AFTA has issued a warning to agents.
The Australian Competition and Consumer Commission (ACCC) is targeting Australia’s travel sector to stop excessive credit card surcharging, AFTA warns.
In a message issued yesterday, the Federation reminded its members that since 1 September 2017, businesses can charge their client only what it costs them to process a payment.
“For those AFTA members that are part of the AFTA Chargeback Scheme (ACS), your payment provider can help ensure that you are complying with the payment regulations, and ACS itself will ensure that you are protected against chargeback loss from supplier insolvency.”
AFTA chief executive Jayson Westbury said he believed “that given the recent enforcement activity by the ACCC, AFTA members not yet part of the ACS should join now to ensure that they are compliant with the law and access the protection against chargeback loss”.
The most recent court action on excessive surcharging saw the ACCC commence proceedings in the Federal Court against Europcar (CLA Trading Pty Ltd), alleging it has breached the Payment Surcharge Laws. See: ACCC hits Europcar for allegedly excessive surcharges
The ACCC alleges that Europcar customers who used Visa or MasterCard credit cards during July and August 2017 were overcharged by at least 0.18% to as much as 0.65% for different cards and time periods.
A second travel and tourism industry member, Cruisin Motorhomes, had to pay out AUD 12,600 earlier this month after the ACCC alleged that, in January 2018, Cruisin Motorhomes charged Visa and MasterCard customers a 2% surcharge, despite the cost of processing the payment ranging from 0.41 to 1.48%. See: ACCC hits motorhome firm over excessive surcharges
AFTA suggests members read the information it has prepared on payment surcharging.
“AFTA members are also reminded that they can submit an ACS application at any time by completing the one-page application form and submitting through the My AFTA Portal where you submit your ATAS renewal.
Written by Peter Needham
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AFTA should look in its own backyard. I’ve seen quotes and invoices from the major players who make up the AFTA board, charging clients a credit card fee even though the airline involved absorbs card fees.
AFTA should look in its own backyard. I’ve seen quotes and invoices from the major players who make up the AFTA board, charging clients a credit card fee even though the airline involved absorbs card fees.