MasterCard hits out at excessive surcharges on credit cards

Thursday 09 June 2011

Article by Mozo

Credit card provider MasterCard has struck out at merchants that levy excessive surcharges on transactions.

MasterCard backs RBA cap on surcharges

Head of strategy for the company David Masters told Radio National's Breakfast programme that there is "no question" that the amount paid by consumers is higher than it needs to be in many cases, reports ABC News.

His comments come after the Reserve Bank of Australia (RBA) published a report indicating that the average surcharge is 2.5 per cent – one percentage point higher than the average amount it costs merchants and retailers.

"There is no question that they are taking that and adding that as their bottom line in terms of using it as revenue, not as a cost recovery method," Mr Masters stated.

He added that MasterCard supports proposals by the RBA to place a cap on surcharges, which may mean more Aussies will soon be tempted to go online to compare credit cards to take advantage of lower surcharges.

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