International processing fees in Australia

[boomahtrix]

Hello. I’m planning on using my platinum dining credit in Australia and the restaurants I’m looking at all say something like this:

All Visa, Mastercard, and AMEX credit card transactions incur a processing fee of 1.8%. Debit card (Visa & Mastercard) transactions incur a processing fee of 1.4% and EFTPOS, 1.15%. International cards incur a processing fee of 3.5%. 10% discretionary service charge applies to all groups of 6+. 10% surcharge applies on Sundays. 15% surcharge applies on all public holidays.

Now, all is that is crazy coming from the UK, but whatever, the thing I’m interested in is “International cards incur a processing fee of 3.5%”. Does that mean if I use my UK amex platinum and pay in AUD, I will get charged an extra 3.5%? This will of course be on top of the amex foreign exchange fee?

Thanks.

[JDB]

@boomahtrix – all these extra card fees and weekend menu price surcharges etc. are permissible and widespread in Australia but vary by restaurant. And, as you say, they are on top of any Amex FX fees you might be charged.

[boomahtrix]

But the question is, will I get charged an extra 3.5% fee by using my amex even if I pay in AUD. Can they tell it is a international card?

[JDB]

boomahtrix wrote:

But the question is, will I get charged an extra 3.5% fee by using my amex even if I pay in AUD. Can they tell it is an international card?

Yes, they can tell it’s an international card, just by looking or by the BIN or via their card machine. In essence, unlike in Europe where merchants are not permitted to add any charge to those using personal cards, in Australia merchants are allowed to add the costs they pay for card processing and international cards are more expensive to process. Equally, because staff are paid more at weekends and during holiday periods, restaurants can add a surcharge. Hospitality margins are miserable, so it’s quite understandable.