Since Australia’s card surcharge ban took effect on October 1, social media users have questioned new “service fees” and “daily surcharges” appearing on their bills. Some businesses have simply raised their prices.

A recent Reddit discussion captures some of this frustration.

So are these new fees illegal?

Not necessarily. But a business cannot make a card surcharge permissible simply by giving it a different name.

A different label does not change the substance

From October 1, the card networks Visa, Mastercard, EFTPOS and American Express no longer allow businesses to add a surcharge when customers pay with their cards, as explained in the Reserve Bank’s guidance on the new rules.

The consumer regulator, the Australian Competition and Consumer Commission, says businesses can still charge genuine service, booking or other fees that are unrelated to how a customer pays.

But it also warns businesses not to get around the new rules by describing a card payment surcharge as another type of fee. Doing so may amount to misleading conduct.

The practical test is simple: what triggers the charge? If a fee appears only because you paid by card, calling it a “service fee” does not change what it........

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