More credit card surcharging

News today that petrol stations will introduce charges for credit card use. This is a reasonable move given the additional fees stations have to pay their banks for this service. If all goes to plan, this should mean a reduction in headline petrol prices. Also, as the ACCC and others gather data on petrol prices, this will be an opportunity to test whether the credit card reforms are really doing their intended job. We will have to wait and see. [Alas, the service station associations are not selling their moves this way. That is a worry.]

One thought on “More credit card surcharging”

  1. I’m frequently surprised at the consumer and political anger generated when retailers pass on the credit card transaction cost to the consumer. The charge is merely a reflection of the increased cost, and one that a smart consumer can easily avoid (by paying cash… or doing a runner with a full tank).

    The argument is a little trickier when it comes to good such as airline tickets, where there is no practical alternative to a credit card payment, but even then the explicit ‘credit card charge’ is far more transperant than the firm merely absorbing the cost.

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