CAR rental firm Europcar is facing legal action from the Australian Competition and Consumer Commission, in the first ACCC litigation relating to the excessive credit card surcharging provisions introduced for large firms two years ago (TD 27 May 2016).
The ACCC is alleging that Europcar customers who used Visa or MasterCard credit cards during Jul and Aug 2017 were charged fees higher than what it cost Europcar to accept the payments.
“It is alleged that Europcar charged surcharges of up to 1.43%, although the rates varied over time and by the type of card,” the ACCC said, also saying the car rental firm did not reduce the surcharges despite being notified by its bank in Jul 2017 of the actual cost to accept payments by these cards.
“This alleged conduct by Europcar in relation to its surcharge rates is particularly concerning, given we will allege that it was well aware of its own cost of acceptance from at least Jul 2017,” according to ACCC chair Rod Sims.
The ACCC proceedings only relate to outlets owned and operated by Europcar, and not those run by franchisees.
In Australia, 96 out of 126 Europcar offices are company-owned, the ACCC noted.
MEANWHILE AFTA ceo Jayson Westbury highlighted the action against Europcar, saying “this is a real and present warning to all in the travel industry – including airlines who appear to think that excess surcharging of credit cards via ADMs might be OK.
“I am sure nobody wants to be in court over a matter like this, and for the past 12 months AFTA has been working hard with members and the broader travel industry to ensure that we are all operating within the law,” he said.
Westbury said the action by the ACCC should not be taken lightly regardless of the court outcome.
“It demonstrates that the ACCC is willing to pursue companies regarding credit card surcharges.”
Other travel companies which have been fined in relation to this issue include RedBalloon (TD 20 Nov 2017) and Cruisin’ Motorhomes (TD 18 Jul 2018).
Source: traveldaily