Passing processing fees onto participants is not allowed in Australia

On February 25, 2016, the Competition and Consumer Amendment (Payment Surcharges) Act 2016 became law. It inserted a new part into the Competition and Consumer Act 2010 (CCA) banning excessive payment surcharges and provided new powers for the ACCC. 

The purpose of the ban is to stop businesses from charging payment surcharges that are excessive. 

This ban does not prohibit businesses from recovering your applicable costs of accepting payments, however section 48 of Australian Consumer Law requires that when you present prices to your customers, you should state the total prices including compulsory tax, duty, fee, levy or other additional charges as the single most prominent price. 

The ACCC provides this specific example: 

A ticket seller prices its tickets at $40. The seller also pre-selects $5 ticket insurance, and imposes a mandatory booking fee of $3 per ticket on all customers whether they purchase over the phone, internet or in person. A purchase also attracts 10 per cent GST. 

This could be advertised as: 

• $52.80
• $52.80 (including $5 ticket insurance, $3 booking fee and 10% GST) 
• $48 + $4.80 = $52.80
• $40 + $5 ticket insurance + $3 booking fee + $4.80 GST = $52.80

A prominent single price is one that is clear and stands out so that it is easily noticed by a consumer. What is 'prominent' may vary on a case-by-case basis and you should consider factors such as the advertising medium, size, placement, colour and font of the price, as well as the background of the advertisement. For example, in print advertising, if a single price is smaller or in a colour that is harder to read than any component price, then this is likely to mean that it is not as prominent. 

Race Roster Fee Calculator 

The specific mechanics of the above laws do not mean that you cannot include your applicable costs, including Race Roster fees, in your pricing schedule. 

We have provided this tool that will allow you to enter the price or amount that you want to receive AFTER Race Roster deducts its fees. 

If you have any questions or require assistance with the calculator please contact us on director@raceroster.com.au or call on 1800 734 669.

Additional Pricing Text 

If you wish to follow one of the formats above for pricing advertising, we suggest that you add this into your sub-event descriptions.