1% charge on cards is fair. That’s about (if not a little less) than what most businesses would pay to payment processors.
Personally I think restaurants/cafes should charge only what’s written on the page when you order and factor in running costs to those numbers, regardless of payment type. It always feels cheap when places ding us with extra things here and there.
SanctuFaerie on
I would argue no. They’re effectively charging a 4% surcharge when paying by card, which is outside what it is costign the business.
Linkdup_ on
Why would it not be allowed? If they want to give you a discount for paying cash is up to the business. And they can charge a surcharge for paying by card as long as it is no more that what it costs the business to use that payment type.
You often get people arguing that “legal tender” means it needs to be accepted- this is only true of the reserve bank. Even banks (like Macquarie) are not accepting cash deposits any longer.
Offering a cash discount is a red flag for tax authorities.
Eww_vegans on
Are you at the botanic gardens?
notmyrlacc on
Actually, this might not be legal. There’s no way to pay the price advertised.
Cash is “3%” less but then using a card attracts a “1% surcharge” so in reality that 1% is a 4% surcharge.
7 Comments
Yes. As long as it’s upfront.
1% charge on cards is fair. That’s about (if not a little less) than what most businesses would pay to payment processors.
Personally I think restaurants/cafes should charge only what’s written on the page when you order and factor in running costs to those numbers, regardless of payment type. It always feels cheap when places ding us with extra things here and there.
I would argue no. They’re effectively charging a 4% surcharge when paying by card, which is outside what it is costign the business.
Why would it not be allowed? If they want to give you a discount for paying cash is up to the business. And they can charge a surcharge for paying by card as long as it is no more that what it costs the business to use that payment type.
What could possibly be the point of this?
Yep, businesses can choose whatever way they wish people to pay. There’s no law that says they have to treat all payment types equally or even accept all payment types.
https://www.accc.gov.au/business/selling-products-and-services/payment-methods
There’s rules are around surcharges – they have to only pass the actual surcharge on, not more.
https://www.accc.gov.au/system/files/1193_Payment%20surcharges_FA_web03.pdf
You often get people arguing that “legal tender” means it needs to be accepted- this is only true of the reserve bank. Even banks (like Macquarie) are not accepting cash deposits any longer.
Offering a cash discount is a red flag for tax authorities.
Are you at the botanic gardens?
Actually, this might not be legal. There’s no way to pay the price advertised.
Cash is “3%” less but then using a card attracts a “1% surcharge” so in reality that 1% is a 4% surcharge.
How can you pay the price advertised?