New credit card surcharge rules

New credit card surcharge rules came into effect as of today. You probably heard this on this morning’s news on TV and radio.

But don’t panic, it may not affect your small business yet.

These new rules don’t apply to small businesses until September 1, 2017. It does though already apply to businesses with more than $25 million of turnover or more than 50 employees.

These new laws have been introduced by the Australian Competition and Consumer commission (ACCC). With their past history, it is a given that they will very quickly make someone a scapegoat.

Under these new rules, there are maximum percentage surcharge rates that can be used. And for those businesses that charge a fixed amount, that amount must not exceed the cost to the business.

Most businesses charge a percentage. The set maximum rate for Visa and MasterCard is 1.5%, 0.5% of debit cards and 3% for American Express.

I would expect there to be very loud protests leading up to September next year as many businesses are charged more than the 1.5% on Visa and MasterCard transactions by their bank. And then there are those that use generic solutions such as Square which charges a flat 1.9%.  We will keep our clients updated leading up to this second implementation date next year.

If you would like to read more, a good short summary has been prepared by MYOB which can be accessed at:-

http://tinyurl.com/jeyxllv

If you want to read the nitty-gritty or are have trouble sleeping, you can read the Reserve Bank review at:-

http://tinyurl.com/zk2d79u

At MRS, we will spend today planning for your success tomorrow.

At MRS, we will spend today planning for your success.