Financial institutions such as banks, building societies and credit unions can generally determine the price they charge you for the use of their money (interest rates) and access to your accounts (fees and charges).
Financial institutions must not mislead or deceive you about any fees and charges that apply to your account and have responsibilities to provide you with accurate information about the cost of your banking.
Credit card surcharges
Merchants such as shop keepers, trades people and other businesses can charge you an extra fee (often called a surcharge) if you pay for goods and services with a credit card. This surcharge allows them to recover the costs of processing credit card payments (called merchant service fees).
The merchant can set the value of the surcharge however the merchant's bank can restrict the merchant from charging a fee that is greater than the merchant service fee. Not all businesses will impose a surcharge if you choose to pay with your credit card. However if they do they must ensure that you know that a surcharge will apply and how much it will cost you before entering into the transaction.
Merchants must not mislead or deceive you about the amount or existence of credit card surcharges.
The 'Uniform Consumer Credit Code'
State and territory consumer affairs or fair trading agencies look after fair trading laws that include similar protections for consumers as Commonwealth laws.
The states and territories also look after the Uniform Consumer Credit Code (UCCC) which regulates consumer lending. The UCCC gives you the right to get account information and copies of documents for most types of loans and credit cards.
In some circumstances the UCCC also lets you apply to vary your repayments if you have suffered hardship (e.g. because of illness, unemployment or other reasonable cause). It also regulates repossession and court action if you default on repayments for a consumer loan.
As well as looking after these laws, state and territory consumer affairs agencies operate licensing or registration schemes for independent debt collection agents.
You can complain to your state or territory consumer affairs agency about harassment by debt collectors. Search our Consumer & business directory (see the link in the menu on the left) for contact details for consumer affairs agencies in your state or territory.
The ACCC's role in financial services
The charging of interest, bank fees and credit card surcharges are regarded as 'financial services' and are therefore not within our jurisdiction.
Government agencies including the Australian Securities and Investment Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia have a role in overseeing financial markets, products and services. See below for more information on the roles of these agencies.
Businesses must not engage in anti-competitive conduct such as price fixing, market sharing and boycotts. Financial institutions and businesses must make their own independent decisions about whether to impose fees and surcharges and how much these fees and charges will be.
Businesses that enter anti-competitive agreements are breaching the competition provisions of the Trade Practices Act and significant penalties may apply.
Who else can help you
The Australian Securities and Investments Commission (ASIC) regulates the activities of all organisations that provide financial services. It is responsible for protecting consumers who have savings or deposit accounts and credit cards. If you think you have been misled by a business about a credit card surcharge or bank fees or if you need further information you can contact ASIC on 1300 300 630. Visit ASIC's consumer website, FIDO, for more information on savings or deposit accounts, credit cards and credit card surcharges.
The Australian Prudential Regulation Authority is responsible for the promotion the safety and soundness of deposit taking institutions and supervises the organisations operating in the financial services industry.
The Reserve Bank of Australia is responsible for monetary policy and the stability of the financial system.
