Cafe's ‘hidden fees’ sparks fury among Aussies: ‘The total was way too steep’

The simple pleasure of enjoying a coffee or a bite to eat at a local cafe is one of life's small joys.

It's a chance to sit back, relax, and indulge in a little treat. But what happens when that treat comes with an unexpected and hefty price tag?

This is the question on many Australians' lips after a recent incident at a Sydney cafe left customers feeling more than just a little short-changed.



A customer's leisurely visit to a trendy Inner West Sydney eatery turned sour when, after paying for his food, he received a bank notification that revealed a series of 'hidden surcharges' had been added to his bill.

The unsuspecting diner had ordered a sandwich priced at $18.50, but after a 1.2 per cent card surcharge and a weekend surcharge were tacked on, he found himself paying an additional $2.77, bringing his total to a steep $21.27.


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A customer was surprised that he paid an additional $2.77 from his bill. Credit: u/shane_957 / Reddit


The disgruntled customer took to social media to express his outrage, claiming there were no visible signs in the cafe indicating the presence of these extra charges.

It was only after he received the bank notification that he became aware of the surcharges.

He criticised the cafe for its 'sneaky' payment process and also blamed Square Readers, the contactless payment system used, for facilitating this issue.

According to the Reserve Bank of Australia, Australians are losing a staggering $960 million a year in surcharges by using cards over cash.

While Australian retailers are permitted to pass on the cost of card transactions to customers, the Australian Competition and Consumer Commission (ACCC) mandates that these surcharges must not exceed the actual cost incurred by the business and must be clearly displayed to customers.



The rules are clear: for weekend surcharges, venues must prominently display a statement such as 'a surcharge of [percentage] applies on [day or days]' on their menu.

This means all venues must clearly display any surcharges, and ‘hidden fees’ are deemed illegal.

However, despite these regulations, the customer claimed that there was no signage about surcharges on the menu, display board, or at the cashier, and there was no forward-facing screen showing the total amount being charged.

He said he was ‘surprised’ to be charged extra because ‘the menu price is high, but the total was way too steep’.

When he returned to the café to ask about his bill, an employee mentioned the weekend surcharge.

The man's social media post, which included photos of the menu and point-of-sale area, has since garnered support from hundreds of other individuals who shared his frustration.



One person told him to file a complaint with the ACCC as ‘the more data and complaints we give, the better they can do their job and get an understanding of what’s happening’.

Others also urged him to complain to NSW Fair Trading, the local council, and the business owner and to leave a Google review to warn potential customers.

‘This is too common nowadays. Staff don’t say how much the transaction costs and just point to the Square,’ one person commented.

Another said that was ‘why I’ve reverted to cash’, while another called hidden surcharges a ‘systemic’ issue.
Key Takeaways
  • A customer voiced his frustration on social media after encountering hidden surcharges at a Sydney cafe with no signage indicating the extra fees.
  • The diner was charged a 1.2 per cent card surcharge and a weekend surcharge, totalling an additional $2.77 on his already expensive sandwich.
  • According to ACCC regulations, businesses must clearly display any surcharges, but the customer claimed there was no such signage at the cafe.
  • The customer's post on social media led others to advise him to lodge complaints with the ACCC and NSW Fair Trading and to inform others through a Google review.
Have you experienced similar issues with hidden fees at cafes or restaurants? How do you ensure you're getting what you pay for? Share your stories and tips in the comments below!
 
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I was recently charged $11.29 card fee by a company who put in smoke alarms when I paid their bill over the phone with my card. This is the highest fee I have yet had to pay and tops the ATO's charge for the same thing of $10.39!!! What is going on here! When cash goes I hate to think what we will all be paying to use our own money!
 
And this is what happens when people decide to go cashless, your hard earned dollars is stripped from you in hidden bank fees that your bank doesn't tell you about. Go with cash only, no hidden bank fees there. In all honesty though, the banks are about making big profits and they really don't care how they make it, but at the end of the day it's all at their customers expense
 
Anyone STUPID enough to pay nearly $20 for a sandwich DESERVES to be treated like an idiot!
If I ever had any 'hidden charges' added to what I'd agreed to pay I'd tell them to get stuffed and walked out. And if push came to shove I'd deny that I'd HAD a sandwich or that I'd agreed to 'extras', making THEM prove otherwise. Then I'd set about putting them out of business completely.
Not even the Taxman tacks on 'hidden charges'!
 
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Anyone STUPID enough to pay nearly $20 for a sandwich DESERVES to be treated like an idiot!
If I ever had any 'hidden charges' added to what I'd agreed to pay I'd tell them to get stuffed and walked out. And if push came to shove I'd deny that I'd HAD a sandwich or that I'd agreed to 'extras', making THEM prove otherwise. Then I'd set about putting them out of business completely.
Not even the Taxman tacks on 'hidden charges'!
 
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Reactions: Jest
Which ever Government is in power the day that they announce that we as a Country are going to a cashless society I do not envy them in the least,.....The public outcry from the general Australian public will be followed by massive protests etc and civil unrest the likes that we have not seen for many many years. Long may we say God save the King, because nothing will save the Australian Gov't following that announcement. (apologies to GW).:unsure::mad:
 
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Reactions: natalielocket
the surcharge should be paid by the vendor because the charge is a huge benefit FOR the vendor it enables customers to spend regardless as to affordability, it saves the retailer heaps in handling ,recording, riskless banking, accounting, safety for staff ,low risk of robbery/ cheaper insurance and immediate bank credit for sales as well as actually not attending to physical banking....these costs are saved by/card surcharge and should be included in general business costs like rent elect etc. which are included in the profit margin of the business, Otherwise we will end up like USA where one doesn't know how much a $4 cup of coffee will cost
 

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