Australia’s consumer watchdog is urging businesses to ensure card surcharges are in line with the law.

The Australian Competition and Consumer Commission (ACCC) is encouraging businesses to review their surcharges to make sure the cost doesn’t exceed the cost of accepting card payments.

Any card payment surcharges that apply should also be adequately disclosed up front.

“Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,” ACCC Deputy Chair Mick Keogh said.

Australian Consumer Law prohibits businesses from misleading people about the prices they charge and charging a card payment surcharge that is excessive.

This year the ACCC will focus on educating businesses on their obligations to help them to comply with the laws.

“We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business,” Keogh said.

“However, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers.

“It is important for small businesses to ensure they understand their obligations and check their costs of acceptance to know what amounts they can legally charge their customers as a payment surcharge, as well as reviewing how they inform customers of their prices, including any applicable surcharges.”