The Reserve Bank of Australia must publish the true cost consumers are ‘paying to pay,’ consumer watchdog Choice has recommended while branding credit card surcharges as out of control.

Choice is recommending a series of reforms aimed at reining in excessive costs. It has used its submission to the Reserve Bank’s consultation on card surcharges to say surcharges should only pass on the real costs of transactions, and should not be used as a hidden revenue stream.

“CHOICE believes surcharges must be fair, in line with the genuine costs to the merchant, and clearly displayed,” says CHOICE Head of Campaigns, Matt Levey.

Choice recommends that any surcharges should reflect the direct cost of the transaction, meaning no more cream on top for those excessively surcharging and that online retailers should give a clear indication of surcharges at the start of the sale and everywhere the headline price is advertised.

The people’s watchdog also recommends there should be one surcharge per payment and no adding a surcharge to each item. Surcharge limits should be enforced by an appropriate agency that provides an avenue for consumers to raise complaints, and the RBA should collect and publish data on the total dollar amount of surcharges collected by merchants, Choice said.

“We need a reliable estimate from the RBA of what the public pays in surcharges to show if it’s hundreds of millions or even more. Until then, some business will continue to use surcharges as a way to increase profits,” said Mr Levey.