A Word of Advice

31 May 1999

Fees and EFTPOS Charges

"Can they really do that?" is a typical cry from consumers when they think they're not getting a good deal. And the Ministry of Consumer Affairs has been hearing a few of these cries echoing around the country regarding the rounding of prices and the charging of EFTPOS and cheque fees.

Can traders really charge you a cheque or EFTPOS fee? Yes, so long as they tell you verbally or in writing (eg, a clear sign) about the fee before you buy the goods - eg, on the petrol pump by the EFTPOS sign.

Charging service fees for using EFTPOS for withdrawing cash is not common practice, but traders can choose to – again, they must tell you this verbally or in writing before you withdraw the cash.

Rounding prices

While one and two cent coins are no longer in circulation, their value still remains. This means that a trader can still offer goods for sale at $1.99. The method by which some goods are sold (eg, by weight or measure) also means that prices may not necessarily end in zero or five.

And the price you actually have to pay for these goods depends on how you pay.

If you are paying cash, the trader can round the price up or down to the nearest 5 or 10 cent value. One method that is commonly used is to round down prices ending in 1,2 to 0 and 6,7 to 5 and round up prices ending in 3,4 to 5 and 8,9 to 0. But the trader should be consistent in applying whatever rounding policy is used.
If you are paying by cheque, credit card, or EFTPOS the trader should not round the price. This is because these methods of payment allow you to pay the exact price.