Credit card surcharge
From 1 July 2013 a surcharge will be added to payments made to the department using the credit option. The department incurs fees from financial institutions when customers choose to pay for services using the credit option.
A surcharge of 0.4% will be applied to the total amount paid using the credit option. The surcharge applies to Visa and MasterCard, and will bring the department into line with other organisations.
This table provides examples of the 0.4% surcharge.
|Example product |
For example, to pay for a 5-year driver licence that costs $143.75, using the credit option will incur a surcharge of $0.57.
From 1 July 2013 the credit option will no longer be available through BPAY. BPAY payments can be made by the cheque or savings option.
Is the surcharge included in the transaction amount or as an additional amount?
The credit card surcharge is applied on top of your transaction when you select ‘credit’ as your method of payment.
Why is the credit card surcharge being implemented?
The department is charged fees by financial institutions when customers pay using the credit option.
It has become standard business practice elsewhere in government and industry that customers who choose to pay for services using the credit option incur a surcharge.
What Transport and Main Roads products incur the credit card surcharge?
The credit card surcharge applies to all products paid using a credit option. Some of these include driver licences, registration, practical driving tests, vehicle inspections and fines.
How can I avoid paying the credit card surcharge?
There are many other ways to pay for your transactions such as paying by cash, EFTPOS (savings and cheque account), cheque, money order and BPay.
Will I be charged a fee if I pay by EFTPOS (savings and cheque account)?
No. The credit card surcharge only applies to payments made using the credit option.
Why does credit incur a surcharge but EFTPOS (savings and cheque account) do not?
Merchant fees are only incurred by the department when our customers use the credit option, not EFTPOS (savings and cheque account).
You advised registration costs were frozen for 3 years, now I have to pay more when I pay my registration, why?
Registration fees are frozen until 1 July 2015, however if you choose to pay using the credit option you will incur a 0.4% credit card surcharge from 1 July 2013. The credit card surcharge will only apply to payments where our customers choose to pay using the credit option. A registration renewal costing around $660 for a 4-cylinder family car paid by credit, will incur a credit card surcharge of approximately $2.64.
Will the credit card surcharge be applied forever?
The credit card surcharge will apply for as long as there are these costs associated with credit facilities.
Will the amount increase, if so how much?
The credit card surcharge may increase in line with business costs associated with credit transactions.
Why do I have to pay when other government departments don’t charge?
Other government jurisdictions do pass on these fees.
The department incurs a high cost of credit card merchant fees due to the large volume of payments. The decision to surcharge for our products was made in line with current government priorities, aiming to reduce costs to the government.
What is the department going to do with money collected?
The money collected is offsetting the fees charged by financial institutions.