Hate paying surcharges? Here’s how to save when using your bank card

If you’ve bought a coffee or paid for something using your card lately, you may have been hit with a surcharge.

When paying by card, the transaction can be routed through different payment networks. Some of these networks charge merchants more, and those extra costs can sometimes get passed on to you in the form of fees. 

While paying a few cents here and there may seem insignificant it can add up over time, with Australians paying more than $960 million a year in surcharges.*

So how do you avoid paying surcharges, or at least pay as little as possible?

Use cash where you can

The easiest way to avoid card surcharges is to pay by cash.

While businesses can charge a surcharge for paying by debit or credit cards, they can’t charge a surcharge for paying by cash.

BCU Bank customers have fee-free access to hundreds of ATMs across Australia through the atmx network.

It’s important to remember some businesses don’t accept cash, and they’re not legally required to do so.

Swiping or inserting your card

Your BCU Bank Visa Debit card is a ‘dual network’ card, meaning it can be used to make payments via the Visa network as well as the EFTPOS network.

It’s usually cheaper to make payments via the EFTPOS network. You can do this by swiping or inserting your card and selecting the ‘Savings’ payment option.

Options like ‘tap and go’ or paying with your digital wallet are likely to attract higher fees, as they default to the Visa or Mastercard network.

What’s a fair surcharge?

The Reserve Bank of Australia (RBA) states the “surcharge must not be more than what it costs the business to use that payment type”.† 

With surcharges varying between businesses, what’s a fair amount to pay?

As a guide, the RBA estimated average costs for different payment types.‡

Next time you're at the checkout, take a moment to sus out any surcharges and select the payment method that works for you. Your future self - and your bank balance - will thank you.

*Source: ABC News/Reserve Bank of Australia
† Source: RBA
‡ Source: Australian Competition and Consumer Commission