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A Sydneysider recently brought attention to skyrocketing EFTPOS fees, days after record-high inflation was reported for April. And, understandably, she’s frustrated.

When Ben Fordham from 2GB radio received an angry call from Marrisa (identified only by her first name), detailing her fury at being hit with high EFTPOS fees, he was quickly inundated with messages from other Aussies who shared similar concerns.

As Australia moves steadily towards a cashless society, we’re left in an impossible situation. But how exactly has inflation left its mark on EFTPOS fees?

Effie Zahos, Editor-at-Large of Canstar, explained the fees themselves have not technically risen, but simply reflect the changes in inflation.

Have you noticed rising EFTPOS surcharges? Image Credit: Shutterstock

'We are in a cost-of-living crisis, we are seeing inflation numbers still at that 7 per cent, so the value of what we buy has gone up. So guess what? The fee we pay on that card goes up as it's calculated as a percentage.'

For Mastercard, these fees are currently at around $0.47, whereas Amex can be a lot more expensive with a $1.34 surcharge.

It’s not just individuals who are being affected by the higher fees – small businesses also incur a cost to use EFTPOS in their stores. In fact, one small business owner called Ben Fordham’s show to express his anger at a 20-cent increase in transaction fees in January this year.

Zahos offered some empathy for the situation.

'Some of the smaller businesses can’t carry it on, and they’re forced to pass it on to consumers. I do feel some pain for them as well. Understand they may possibly charge you a higher surcharge than big business.'

According to the ACCC, ‘the surcharge must not be more than what it costs the business to use that payment type’. So we shouldn’t be seeing any outlandish surcharges anytime soon.

So, how can you avoid being stung by high transaction fees? While it’s not always possible to avoid the fees, some businesses may charge a lower transaction fee for debit cards.

Key Takeaways

• A Sydney resident expressed her frustration at being charged high EFTPOS fees over the weekend on 2GB radio, claiming she feels 'ripped off using my money.'
• Editor-at-large of Canstar, Effie Zahos, explained that the fees themselves have not increased but have been influenced by record-high inflation which impacts the value of what consumers buy.
• Mastercard fees average around $0.47, and Amex fees are significantly higher at $1.34 per surcharge, according to Zahos.
• To avoid high transaction fees, Zahos advised customers to swipe their cards rather than using tap-and-go, which can go through more expensive networks.

Were you aware of the increase in EFTPOS surcharges? Or, like us, has this taken you by surprise? We would love to hear from you in the comments section below.

 

[Thecheesequeen]

And that’s why cash is king!

 

[poppyshero]

Use cash. No problem.

 

[ElizaKaye]

I refuse to use the ATMS that charge a fee. In our shopping centre there is still one machine owned by the Combank that doesn't charge a fee.

 

[mylittletibbies]

I have switched back to cash when I do my shop. Using your card is a trap, so easy to tap. I have found that by setting myself a budget for 4 weeks, doing a menu plan for that period and staying away from the shops in between, unless absolutely necessary I spend so much less.
I shop at Aldi so I also save the EFTPOS fee, which although it may not appear a lot at the time it adds up over a year.

 

[Pommyoz]

I was told with Aldi, to insert, rather than tap. Must check my receipt next time!

 

[Teddy is my boy]

l believe there is no cost if you insert instead of tapping.
My daughter has a small business and they make nothing out of small sales like a small coffee or a bottle of water if customers use eftpos.

 

[KiwiTrish]

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A Sydneysider recently brought attention to skyrocketing EFTPOS fees, days after record-high inflation was reported for April. And, understandably, she’s frustrated.

When Ben Fordham from 2GB radio received an angry call from Marrisa (identified only by her first name), detailing her fury at being hit with high EFTPOS fees, he was quickly inundated with messages from other Aussies who shared similar concerns.

As Australia moves steadily towards a cashless society, we’re left in an impossible situation. But how exactly has inflation left its mark on EFTPOS fees?

Effie Zahos, Editor-at-Large of Canstar, explained the fees themselves have not technically risen, but simply reflect the changes in inflation.

View attachment 18906

Have you noticed rising EFTPOS surcharges? Image Credit: Shutterstock

'We are in a cost-of-living crisis, we are seeing inflation numbers still at that 7 per cent, so the value of what we buy has gone up. So guess what? The fee we pay on that card goes up as it's calculated as a percentage.'

For Mastercard, these fees are currently at around $0.47, whereas Amex can be a lot more expensive with a $1.34 surcharge.

It’s not just individuals who are being affected by the higher fees – small businesses also incur a cost to use EFTPOS in their stores. In fact, one small business owner called Ben Fordham’s show to express his anger at a 20-cent increase in transaction fees in January this year.

Zahos offered some empathy for the situation.

'Some of the smaller businesses can’t carry it on, and they’re forced to pass it on to consumers. I do feel some pain for them as well. Understand they may possibly charge you a higher surcharge than big business.'

According to the ACCC, ‘the surcharge must not be more than what it costs the business to use that payment type’. So we shouldn’t be seeing any outlandish surcharges anytime soon.

So, how can you avoid being stung by high transaction fees? While it’s not always possible to avoid the fees, some businesses may charge a lower transaction fee for debit cards.

Key Takeaways

• A Sydney resident expressed her frustration at being charged high EFTPOS fees over the weekend on 2GB radio, claiming she feels 'ripped off using my money.'
• Editor-at-large of Canstar, Effie Zahos, explained that the fees themselves have not increased but have been influenced by record-high inflation which impacts the value of what consumers buy.
• Mastercard fees average around $0.47, and Amex fees are significantly higher at $1.34 per surcharge, according to Zahos.
• To avoid high transaction fees, Zahos advised customers to swipe their cards rather than using tap-and-go, which can go through more expensive networks.

Were you aware of the increase in EFTPOS surcharges? Or, like us, has this taken you by surprise? We would love to hear from you in the comments section below.

Yes I got charged for using eftpos always knew they could charge for credit cards but never been charged for using eftpos Charged at our local club in port Macquarie so haven’t been back no it wasn’t much but just the principal they make enough to cover their bank charges