Ticketmaster has been accused of bending rules by replacing banned credit card processing fees with a new ‘infrastructure charge’ in Australia.
Credit card surcharges deemed excessive were outlawed in May by the Reserve Bank, which regulates the payments system in Australia.
However, while the Reserve said the ban would cause “a reduction in payment costs to merchants”, in recent months Ticketmaster has introduced an infrastructure charge that only applies to credit card sales and matches the 1.95% processing fee that was previously levied on card transactions.
Choice, a consumer advocacy group, called on the Australian Competition & Consumer Commission (ACCC) to look into Ticketmaster’s new charge.
“Ticket companies have a strong history of charging dodgy fees,” spokesman Tom Godfrey told the Australian newspaper.
“We know that when a small number of companies control a market, they try and get away with charging high, confusing and unnecessary fees — this seems to be what’s happening with ticketing.”
The ACCC told the Australian that it will not act against Ticketmaster.
“This does not raise issues with the new excessive surcharging ban, as a customer using a credit card no longer gets charged an additional amount because they paid with a credit card,” said an ACCC spokesperson.
A Ticketmaster spokesperson told the Australian that the “technicalities” of questions put to the company last week were incorrect, but did not explain how.
The accusations against Ticketmaster Australia came as UK consumer groups admitted they are becoming increasingly concerned that laws introduced in 2013 to prevent companies profiting from credit card payments are being ignored.
While the cost of handling an average transaction is estimated to be just 0.6%, a report in The Times named ticket site TicketSource as one company that charges 3.5% in processing fees. The report also said that the Empire cinema chain charges 70p per ticket, the equivalent of more than 12% on the cheapest seat.
“These fees are not just a rip-off, they are illegal,” James Daley, of the campaign group Fairer Finance, told The Times. “The rules came in after a Which? super-complaint and an OFT ruling. Until now the vast majority of airlines had ignored them. Councils and other retailers are still ignoring them.
“The fees are usually charged where purchases are less frequent, for example at travel agents or car dealers. By the time you have gone through the process of choosing and making a purchase you are not going to be put off by an extra 2%, but the costs add up. Sadly, companies know they can get away with it.”
Share this