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This question is about paying the car hire fee only, not about making the security deposit (for which a credit card is understandably required).

Context: at least one Australian car rental company is applying mandatory credit/debit card surcharges. Your rental agreement says that the hire charge is say X, but in fact you have to pay 1.011 * X because of the surcharge. This is in their T&C, and their FAQ says that they won't take cash. They take cards only, and all card types are accepted with a surcharge.

Is it legal for them to form a contract for one amount, but only accept payment methods which result in paying them a higher amount?

Greendrake
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1 Answers1

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It is not a requirement for businesses to accept cash

They can specify that contracts with the business must be settled in a specific way, and if that is done, then other methods of payment, including cash, are invalid.

Businesses can charge card surcharges

Businesses can charge a surcharge for paying by card, but the surcharge must not be more than what it costs the business to use that payment type.

If a business charges a payment surcharge, it must be able to prove the costs it is based on.

If there is no way for a consumer to pay without paying a surcharge, the business must include the surcharge in the displayed price.

It is legal for them to form such a contract, but they are committing an offence by not displaying the price surcharge inclusive (s166 of the ACL). Report them to the ACCC for enforcement; the law does not give you a private right of action.

Dale M
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