Businesses can choose which payment types they accept. It is legal for a business to specify the terms and conditions that they will supply goods and services. This includes whether they will accept cash payment. However, consumers must be made aware of these terms and conditions before they make a purchase.
Businesses should be clear and upfront about the types of payments they accept, and the total minimum price payable for their goods and services.
Consumers can use credit cards to buy goods and services on credit.
They are different from:
- debit cards, which use money direct from a bank account
- prepaid cards, which are loaded with money in advance.
Visit the Moneysmart website for tips on using a credit card wisely.
In general, businesses can charge a surcharge for paying with a credit, debit or prepaid card, but there are rules around what businesses can include in calculating these costs.
If there is no way for a consumer to pay without paying a surcharge, the business must include the minimum surcharge payable in the displayed price for its products.
See Card surcharges for more information about surcharge rules.
Interest-free deals let consumers get a product or service straight away, but pay it off over time through a credit card or store card.
After an interest-free period, consumers must pay interest on any money they still owe. Businesses may also charge fees on interest-free deals.
Visit the Moneysmart website for advice on interest-free deals.
Buy now pay later services
Buy now pay later services allow consumers to buy a product or service and delay payment. Consumers usually pay by instalments without being charged interest. However, businesses may charge fees on buy now pay later services.
Visit the Moneysmart website for advice on using buy now pay later services.
A lay-by agreement is a type of
contract where consumers pay for goods in two or more instalments, and do not receive the goods until the full price has been paid.
Businesses must provide consumers with a written copy of any lay-by agreement that sets out any terms and conditions including termination fees. Termination fees can’t be more than the business’s
reasonable costs in relation to the agreement.
A consumer can cancel a lay-by agreement at any time before they receive the products. If they cancel the agreement, the business must refund their deposit and anything else they have paid, minus any termination fee mentioned in the agreement. If the payments already made by the consumer are less than the termination fee, the consumer must pay the difference.
A business can only cancel a lay-by agreement if:
- the consumer has broken the agreement, for example by not paying instalments
- the business is no longer trading
- the product is no longer available and this is outside the business’s control.