Hidden card fees 'add up'

Charges imposed for paying by credit card soon add up, it has been suggested.

The issue of credit card transaction fees is being questioned by a leading consumer group, it has been revealed.

Speaking to the Courier-Mail, Christopher Zinn of Choice points out that a wide variety of organisations - ranging from councils and airlines to hotels and telephone companies - are imposing card fees for those wanting to pay by plastic.

"While there is a right to do it in most cases, the issue is how transparent is it and how high is the cost?," he asks.

Mr Zinn states that while such charges may not seem very much on an individual basis "it suddenly becomes a large amount of money", when all the people if affects are taken into account.

Indeed, some charges for paying by credit card were shown to be as high as ten per cent of the value of the transaction.

Meanwhile, senator Nick Xenophon recently revealed he is to call for an end to the Australian banking practice which sees customers charged for choosing to pay their bills via cash.

Among those implementing such fees is telecoms firm Telstra which imposes a $2.20 administration surcharge for those customers paying over the counter or by post.

Written by Kate Guthrie