Hold Up, Tap-And-Go Card Payments Might Not Actually Be Free to Use

The best things (like tap-and-go payments) in life aren't free.

If you like using tap-and-go payments to make the awkward process of transactions even quicker, you might be paying more for it than you expected.

According to the ABC, these tap-and-go services actually cost businesses a considerable amount, and they often put those costs on the customers.

The deputy chair of the Australian Competition and Consumer Commission spoke to the ABC to explain that many of us don't realise that the ease and convenience of it comes at a literal price.

"Many people don't realise that when you use paywave it is processed through the credit card system and for most businesses there is a fee they're charged through their bank or their card operator," he told the ABC.

"I think too many of us probably don't [question the potential of costs being associated with tap-and-go] because we assume we're not going to be charged for it."

So, how much are we actually likely to be paying on top of our regular purchases?

Well, it's likely to only be 1 or 2 per cent, which, if you're buying a $3.50 coffee, is only a few cents.

But, when purchases are a bit bigger—say a shopping spree to overhaul your wardrobe or maybe you've finally decided to fork out for a console—then those few cents turn into a few dollars.

Most of the time, however, we won't even realise that we're paying extra because many retailers just absorb the cost into their final price. That $3.50 coffee, for example, might have been $3.40 originally, but they've just upped the cost so they don't have to worry too much about working it all out.

The important thing to remember is that we are talking about a couple per cent here. If a retailer tells you there is a 10 per cent (or more!) surcharge for using a credit card, then they're probably overcharging you a fair bit.

Ahh, just when we thought technology was making life easier.