-
Man using credit card - Source: ONE News -
Related
A growing list of companies are exercising a new power to add fees to your credit card transactions.
ONE News revealed on Sunday that some petrol stations in Wellington are charging motorists extra for using credit, now ONE News has obtained further information about other companies doing exactly the same.
Retailers, government departments, and even the police are taking advantage of the fees. However, the Commerce Commission is warning retailers to be fair and reasonable.
"The idea behind it is to make it transparent so that people have a right to choose and over time we anticipate that that is likely to lead to reduced cost of credit card services," says Peter Taylor from the Commerce Commission.
Telecom has started charging its customers more when they pay with credit. One customer claims they were charged 10% extra on a $900 bill and were not informed.
However, Telecom says its maximum charge is 3% and gives full disclosure.
The New Zealand police also charge 3% for paying fines by credit but wouldn't comment on the issue.
And most companies defend the charge, claiming its necessary to repay bank fees.
"If they don't charge it they have to pick it up as a total cost of business, which means everybody pays a portion of it, so the person paying by eftpos or cash is subsidising the person paying by credit card," says John Alberton of the Retailers Association .
Do you think it's right to be charged extra fees on credit card transactions? Comment below on our messageboard...
Latest NZ News Video
-
ONE News Minute 9am update: May 26 (1:00)
-
Kids cough up $14m for Government (1:50)
-
Education ministry 'barbaric' (1:55)
Add a Comment:
Post new commentNoddy samurai said on 2010-01-15 @ 13:26 NZDT: Report abusive post
Missing the big picture ..."Grow up!" What was the business doing before the law was changed? They were happy the people was happy. All I can say is absolutely rubbish some person high up must of got board
sg01 said on 2010-01-14 @ 12:01 NZDT: Report abusive post
I own an independant BP station and am not oncharging fee's yet. To say that retailers margins have built in allowance to cover fee's is not the case with petrol. The Margin on Petrol is 3 - 5 cents, you take 1.5% cc fee off that transaction your left with not much. I can understand why consumers are so unhappy but when it comes to fuel the business is unsustainable for operators with these fee's as they are currently. Remember everytme the fuel price goes up the stations cc fee's go up also
Juanita01 said on 2010-01-14 @ 08:20 NZDT: Report abusive post
It's the credit card companies that are being greedy, they are the ones triple dipping all the way to the bank and as usual its the retailers and customers who end up paying while they reap in the profits.
MIT said on 2010-01-14 @ 00:11 NZDT: Report abusive post
ok, so the cc company charges the cardholder, then agrees to businesses making a surcharge - & now complains that the businesses are being unfair??? It's the cc companies that are being greedy & holding just about every country to ransom!
nicks said on 2010-01-13 @ 23:25 NZDT: Report abusive post
alot of businesses already factor this into the cost of doing business, so the consumer already pays for it ...its a bit like supermarkets making you pay for plastic bags which has already been added into the cost of the product...only difference now those using credit cards get to pay their own fees...