Exorbitant credit card surcharges could soon be a thing of the past.
The financial services inquiry led by David Murray is reportedly calling for a ban on all outrageous surcharges on credit and debit card transactions.
Instead, retailers would be limited to 12 cents or 0.5 per cent of the transaction value, whichever is less, News Corp reported on Friday.
Many now charge two or three per cent on top of the purchase price if customers pay with credit card.
Treasurer Joe Hockey said recommendations around the payments system are more likely to be matters for independent regulators APRA and the Reserve Bank to consider.
The government would focus on consumer protection and education.
The Murray inquiry will be released publicly on Sunday.
Mr Murray, a former chief of the Commonwealth Bank and head of the Future Fund, and his team have been working on the inquiry for almost a year.
They have received more than 6500 submissions since their interim report, 5000 of which touched on the issue of credit card surcharges.
Consumer advocate Choice says businesses, particularly in hospitality and the entertainment industry, have long been gouging consumers.
“Consider that on a flight you’re not just paying by transaction, $7 or $8, you’re paying per passenger,” spokesman Tom Godfrey told ABC radio.
“Airlines for a very long time have been profiteering on the back of credit card surcharges.”
Mr Hockey on Friday confirmed the financial system inquiry report would propose credit card surcharges be contained.
“Which means that consumers will get the benefit of some of the changes that we will be initiating,” he told the Seven Network.