[clug] The 1st Internet Tax is here.

Kim Holburn kim at holburn.net
Sat Nov 15 17:00:17 GMT 2008

On 2008/Nov/15, at 5:23 PM, Michael Still wrote:

> Alex Satrapa wrote:
>> On 13/11/2008, at 21:30 , Seth Turnbull wrote:
>>> again my major concern was that the bankers have now deemed a  
>>> monthly surcharge (tax) for processing CC transactions. We have  
>>> all in our own way fought over the years to keep the Internet some  
>>> what free and to me this seems like the 1st accepted tax.
>> It's not a tax on the Internet. It's not a tax on e-commerce. It's  
>> an extra surcharge on credit card transactions.
> I agree. It might be a tax (I leave the argument about the  
> definition of a tax to law students), but its not a tax on the  
> Internet. Just don't just credit cards if you don't like it.
>> Just do what every other retailer is doing as CC use costs  
>> skyrocket: add a 1% surcharge of your own to every order paid by  
>> credit card.
> IIRC the credit card merchant agreements don't allow you to charge  
> extra for credit card transactions.

It used to be the case in Australia but there were some reforms  
recently which means this is now allowed.  In other countries this was  
always allowed, why shouldn't it be in Australia?


> From 1 January 2003 merchants could charge you extra for paying by  
> credit card. The change is a result of recent reforms introduced by  
> the Reserve Bank. This Consumer Alert provides tips for dealing with  
> the new credit card fees and explains the reason for the changes.
> Merchants such as shop keepers, trades people, utilities and others  
> who accept payment by credit card are not required to charge a fee  
> for credit card payments. If they do charge a fee, they should make  
> sure you know that they do and how much it will be before you pay.
> Some tips
> If you are thinking of paying by credit card, always check whether  
> there will be an extra charge.
> There is no requirement for such a fee to be charged and it is  
> expected that many merchants will not charge one. However, where a  
> merchant does charge a fee it will be up to them to determine the  
> amount of that fee, and different merchants may charge different fees.

>>> I don't see how they will gain from this vs. simply making a pile  
>>> of money.
>> *chuckles*
>> Yes, that's the business banks are in these days.
> Its pretty common in the US to believe that there is about to be a  
> credit card crisis on the scale of the mortgage crisis. People  
> aren't making their payments any more, and the credit card companies  
> are having liquidity issues. Expect to see raised fees, lowered  
> credit limits, and increased interest rates soon. Given its a global  
> market, you'll get those in Australia as well, even if the crisis  
> itself is limited to the US.
> (Note that I don't think PCI is a revenue effort per se. PCI has  
> been around for _years_ for large corporations, and I assume is only  
> now being extended to small businesses.)
> Mikal
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Kim Holburn
IT Network & Security Consultant
Ph: +39 06 855 4294  M: +39 3494957443
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