Amex finds loophole for card fees in Australia

American Express has quietly introduced a workaround for some businesses to impose surcharges on card payments, potentially circumventing the Reserve Bank of Australia’s no surcharge rules. REA Group, the company behind realestate.com.au, recently added a 1.8% supplier trade fee for payments made with an American Express card, including the goods and services tax.

The discovery was made by Hannah Meyers, who runs her own accounting firm, Cloudy Bookkeeping. She posted about the charge on Instagram, noting that REA Group described the fee as a supplier trade fee rather than a surcharge. The video has since gained traction within the real estate sector.

REA Group, a $20 billion company, is the first major Australian business to implement such a fee, raising questions about whether this approach could become more widespread. The Reserve Bank’s rules prohibit businesses from charging customers extra for using credit or debit cards, but the recent move by REA Group suggests a possible loophole.