It's no secret that we all love a public holiday. It’s the perfect time to enjoy a well-deserved break, relax with friends and family, and maybe even take advantage of some retail therapy or dining out.

However, as you prepare to enjoy the upcoming long weekend to celebrate the King's birthday, we at the Seniors Discount Club are reminding you to be extra cautious with your spending.

Often-overlooked hidden charges may gradually erode your savings significantly and stealthily. Businesses like cafes and restaurants across Australia are infamous for subtly implementing huge surcharges during public holidays.

These 'public holiday surcharges’, are used to offset penalty rates for their staff.

'Jaws will drop across Australia on Monday when cafes and other businesses impose significant surcharges to cover staff public holiday penalty rates,' Waave CEO Ben Zyl warned.

Hidden charges, if ignored, can slowly but significantly reduce your savings. Image by 3D Animation Production Company from Pixabay

He further added, 'Payment surcharging is widespread across the hospitality industry, often flies under the radar, and the rules are not well-enforced. It’s a problem that is costing people huge money each year, and they aren’t even aware of it.'

Although public holiday surcharges can be quite frustrating, Zyl suggests that it’s the daily surcharges we should be even more concerned about, as they often slip by unnoticed.

'It’s the daily surcharges that consumers should really be worried about. Public holiday rates are just a surcharge on a surcharge,' Zyl stated.

According to Zyl, a typical transaction includes a surcharge of 0.5-1.5 per cent. However, it's surprisingly common to see surcharges of up to 3 per cent.

These sneaky surcharges can add up significantly, with even a small surcharge on your daily cup of coffee potentially costing you hundreds each year.

'Multiply this across other daily purchases, and compound it with increasing costs–thanks to inflation–and it quickly adds up to thousands each year lost to surcharges,' he said.

You might wonder whether businesses are allowed to impose these surcharges at all. The answer is yes.

So, what can you do to ensure you're not being overcharged?

Ben Zyl advises consumers to 'always ask if they are being surcharged and how much. If it seems excessive, raise that with the merchant and consider shopping elsewhere. But the reality is that all power is with the merchant.'

Key Takeaways

• Aussies are warned to watch out for sneaky charges during public holidays such as the King's birthday.
• Cafes and restaurants across the country may charge extra on public holidays due to surcharges.
• Payment surcharging is widespread across the hospitality industry and can cost people huge amounts of money each year.
• Consumers should always ask if they are being surcharged and how much and consider shopping elsewhere if it seems excessive.

Tips on how to avoid or minimise surcharges​

Here are some suggestions for consumers to steer clear of or reduce surcharges. Image by Karen Laårk Boshoff from pexels

Now that you're aware of those pesky surcharges, you may be wondering how you can avoid or minimise their impact on your wallet. Well, fear not! We've put together some handy tips to help you make informed choices and keep those extra costs to a minimum.

1. Keep an eye out for signs: Businesses are legally required to display their surcharges prominently and near the point of sale. Take a moment before making a purchase to check for any signage or ask a staff member about potential extra costs.
2. Do your research: Do some homework on your favourite cafes, restaurants, and stores to determine if they apply surcharges. Choose the ones that are transparent and reasonable with their charges, showing support for ethical business practices.
3. Limit out-of-home purchases on public holidays: By limiting outings and preparing a delicious home-cooked feast or targeting sales on non-holiday days, you can minimise the risk of getting stung with public holiday surcharges.
4. Share the knowledge: Discuss your experiences with friends and family, and ask about their encounters with surcharges. Knowledge is power – the more you know about which businesses are fair with their charges, the more informed choices you can make.

At the Seniors Discount Club, we hate to see our members' hard-earned money being spent on unnecessary costs. Thus, we urge you to pay close attention to your purchases and transactions during public holidays like this upcoming one.

Keep these tips in mind, and enjoy your holiday! And do let us know about your experiences with such surcharges; we're always here to lend a listening ear. Stay savvy, and happy shopping!

 

[Observer]

My question would be, "Are surcharges actually legal?"

 

[Lizzylou]

I try and pay things with cash, particularly on public holidays, usually I have found that they add more surcharge when you use your card, so that too is something to be watching out for.

 

[Thecheesequeen]

And that’s why I (almost) always pay cash!

 

[mylittletibbies]

My question would be, "Are surcharges actually legal?"
U
[/QUOTE)

Unfortunately, YES apparently

 

[Observer]

Well it shouldn't be. The number of times I have seen cash not actually go in to the register but in to an ice cream container under the counter. Not only are some businesses not declaring their income but charging us for surcharges as well. Greedy Mothers.

 

[MariaG]

We never venture out on public holidays.

Apart from possible surcharges, there is also a higher presence of police personnel out and about. Double demerits should deter a lot of people who like to gad about.
I remember when I was young, the father of my friend who was a police Sergeant told me that most of the men he works with hate working on public holidays, and, that made them cranky pants. Beware of cranky pants fine givers. The cost of fines now days far surpasses the amount of a cup of coffee with surcharge.
Now, back to surcharges. In my working days, I was a payroll officer. The penalty rates were a big hit to the bottom line. This wasn't a hospitality business, but the principle is the same. If you run a cafe and have a few staff working on public holidays, you should pay them more. So, the only way to recoup that is to whack on a surcharge. Makes sense to me. Mind you, it is absolutely imperative that there is a note on the table, or menu, that makes this clear.

If you don't want to pay a surcharge on food and drink, pack a picnic lunch. We choose not to venture out because we are pensioners and don't need to. Also, not fussed on the crowds.

 

[GLS]

My question would be, "Are surcharges actually legal?"

As stated in the write up YES