Is a 5% Surcharge for Credit Card Payment Legal? Should I Contact the ACCC?

Lizard Spock on 07/10/2021 - 21:27
Last edited 08/10/2021 - 20:52

I recently moved house with a company called Affordable Movers located in Brisbane QLD and was charged a 5% surcharge for the total bill (which ended up being an extra $50). I used a debit MasterCard and paid over the phone and I didn't think anything of it at the time until I noticed I was actually overcharged (even above the surcharge).

Back story:
I was recommended a 22m³ truck by Affordable Movers for our recent move which I agreed to. When the removalists arrived we started to fill the truck and then couldn't get the last few chest of drawers and a cot into the truck. I asked them "is this the medium truck?" They said "this the smaller of the two that they have in the yard". I said that "I was promised a 22m³ truck", so I measure the outside of the truck and it came to a little over 17m³ (keeping in mind the internal measurements would be even smaller). I called the company and the owner, John, answered. I said to him "you guys have sent a smaller truck than my quote", he said "no, that's our medium sized truck which you wanted, there will be no discount". He kept repeating "there will be no discount!". I said, "I am not asking for a discount, I'm just annoyed that you advertised 22m³ and that extra 5m³ would have fit the rest of my furniture". He suggested a second trip and I thought I'm not dealing with this idiot. So that was my 1st sign that this guy was dodgy. Then when I calculated my total bill I noticed I was overcharged, that was my second sign that they were dodgy. So now I'm mainly annoyed about this ridiculous surcharge and would appreciate any advice as to whether this is legal or not. I have contacted them asking for proof of their bank charging them 5% as I am pretty sure the ACCC doesn't allow companies to charge more than what the business is charged by their bank.

Update:
I emailed this to them on the 7th of October.

Thanks for your call today and the refund for the overcharging.

I would like to request proof that Affordable Movers' bank is charging a 5% surcharge for customers using credit cards as I have never heard of such a high amount being charged (not even PayPal charges that much). The ACCC does not allow businesses to charge anything over what the business is charged from their bank/ terminal, and since dealing with John I have no confidence in the way he conducts his business.

I will wait for your response before contacting the ACCC regarding this matter.

Financial

Related Stores

affordablemoversbrisbane.com.au
affordablemoversbrisbane.com.au
ACCC
ACCC

Comments

    • foxmulder on 08/10/2021 - 10:55

      I didn't neg you but if you see the link above have example if bank charge 1% then any amount for the surcharge seller charge customer even slighly higher is counted as excessive.

      • jv on 08/10/2021 - 13:08
        -2

        Most charge more than 1%, a lot more for businesses with small transaction volumes, as this type of business would be.

        The ACCC refer to the cost to the business. This is not just the interest rate.

  • apsilon on 07/10/2021 - 21:41
    +4

    They can charge whatever their costs are but I agree, it's unlikely they're being charged 5%

  • avoidfullprice on 07/10/2021 - 21:43
    +12

    Def report to ACCC.

    Upgrade to Ozbargain platinum membership for direct report button. You can find this under My Account -> Settings.

    You're welcome.

    • cameldownunder on 08/10/2021 - 09:28

      I tried, cant find the button. Admin: Can I please have an upgrade of my account? How many total +Votes do my Posts need to get an upgrade. THanks

  • Ryanek on 07/10/2021 - 21:55
    +4

    A max of 5% is usually reserved for taxis, see here.

    I would definitely raise it with the ACCC

    • Lizard Spock on 07/10/2021 - 22:56

      I came across that too.

  • [Deactivated] on 07/10/2021 - 22:00
    +1

    complain about him to the ACCC. Might be a good idea to notify him you will be making a complaint, he might all of a sudden realise he has overcharged you and generously offer to refund, though it might also not be a good idea to give him warning in case he tries to hide any wrongdoing.

    • [Deactivated] on 08/10/2021 - 04:32

      just to add, shady businesses like this are probably more afraid of big regulatory bodies than joe everyman taking them to court. they can bully / outspend joe everyman into giving up his legal action, but if a regulatory body starts investigating them then they better hope that everything is as it should be, they can't bully the ACCC.

  • MagicMushroom on 07/10/2021 - 22:25
    +2

    Went to see how the company responds to negative reviews on google. https://www.google.com/search?q=Affordable+Movers+Brisbane&s…

    Basically, it's blame the customer and never admit any mistake.

    Also found this on their T&C https://www.affordablemoversbrisbane.com.au/privacy-terms

    1. Lien

    “Lien” is the legal right of the remover to hold goods until the customer has paid all outstanding charges. We shall have a right to withhold and ultimately dispose of some or all of the goods if you fail to pay the charges and any other payments due under this or any other agreement. These include any charges that we have paid out on your behalf. While we hold the goods, you will be liable to pay all storage charges and other costs (including legal costs) reasonably incurred by us in recovering our charges and applying Our right of lien. These terms and conditions shall continue to apply.

    Is this actually legal?

    • SF3 on 07/10/2021 - 22:46
      +3

      Sounds more like a loan shark.

    • itx on 08/10/2021 - 11:25
      +2

      Interesting how almost every five star review starts with the names of the removalists that worked on the job - remarkably consistent customers!

  • SF3 on 07/10/2021 - 22:50
    +2

    Affordable Movers

    Such an Oxymoron.

  • iNeed2Pee on 07/10/2021 - 23:00

    Name and shame. Sounds like John Setka has a side gig!

  • plmko on 07/10/2021 - 23:05
    -3

    You made a thread about the 5% surcharge but not about the size of the truck…..like seriously?

    • Lizard Spock on 07/10/2021 - 23:08

      I addressed that to them in my email as well. I told them they need to stop advertising that their truck is 22m³, they said "the trucks get measured professionally in order to advertise them a certain "size" ". I will deal with the surcharge 1st, and then I will address the truck size further. Even someone in one of the reviews on Google measured the truck and got ~17m³ and they were told the truck was 25m³.

  • elgrande on 07/10/2021 - 23:22
    +1

    They cannot charge more than their cost of acceptance.

  • randomusername2017 on 08/10/2021 - 01:03

    If the email you sent reads anything like the post… wouldn't be surprised if there's a processing fee attached.

    Once you and the ACCC are done with them, could you please go after the dodgy takeaway shops with the 50 cent surcharge on small transactions.

  • Pelicannn on 08/10/2021 - 01:08
    +2

    They have some shocking google reviews in amongst what I'd consider not a bad overall rating given 500+ reviews but it's definitely clear on the lower reviews they seem to be the same consistent problems of:

    a) fixed price service not being fixed price
    b) trucks being described incorrectly
    c) lazy employees

  • p1 ama on 08/10/2021 - 04:16
    +2

    You can report them to the ACCC if that makes you feel better.

    I can tell you exactly what the ACCC will do - pretend to listen or receive your complaint, then ignore it. I know, I used to work there. The ACCC is not going to go after some dodgy moving business.

    My advice - leave a bad review, move on. I presume all your stuff got from A to B. Spend your time doing something that you enjoy.

    • mini2 on 08/10/2021 - 09:03

      Is ACCC even the right place to hear the complaint? Wouldn't OP's be better off to contact their state's consumer tribunal?

      • theHMASfriendship on 08/10/2021 - 09:14
        +1

        No I think this should be reported to the Postmaster General

      • p1 ama on 08/10/2021 - 19:58

        No, the ACCC generally does not take individual complaints, however, when those individual complaints are systematic then they will take action (e.g. Kogan, MSY…etc.).

  • Big Lenny on 08/10/2021 - 09:44
    +1

    report them, take them down

  • solidussnake on 08/10/2021 - 18:17
    +1

    Those reviews look fake as and written by the owner alot of one reviews only

  • yellowfever on 09/10/2021 - 15:41

    so what happened to the last bits of furniture that didn't fit? how did you get it transported?

    • Lizard Spock on 09/10/2021 - 20:34
      +1

      I used my father's Van.

Login or Join to leave a comment
Login Join