Trouble in paradise for the online experience gift retailer Red Balloon, as they have paid over $43,200 in damages following four infringement notices issued by the ACCC. Red Balloon has allegedly breached excessive payment surcharge laws in the Competition and Consumer Act 2010.

Red Balloon on March 31st and June 30th, 2017 allegedly charged four customers excessive payment surcharges with payments they made by MasterCard credit, Visa credit, Visa debit, and MasterCard debit.

Dr. Michael Scharper even confirmed that Red Balloon is charging customers more than they are allowed under ACCC guidelines.

“Red Balloon was charging these customers more than allowed under the law prohibiting excessive payment surcharges on card transactions,

This provides that businesses can only pass on to customers what it costs to accept the payment, including fees such as merchant service fees, and terminal rental and maintenance fees.”

Since Red Balloon is categorised as a large business under the excessive payment surcharges provisions it cannot over charge its customers. These laws have been in effect for over a year now.

Red Balloon since the incidents has lowered its payments to the correct amount and has cooperated with the ACCC’s investigation.