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Surcharges are added to most purchases, but what are the rules behind these extra fees?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/steve-worthington-138">Steve Worthington</a>, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> You head to the register at the cafe to pay for your lunch, swipe your card and suddenly realise you’ve been hit with an extra small but unexpected charge. It might be listed on your receipt as a service or merchant fee, but either way it’s because you’ve used a credit or debit card. With the pandemic accelerating the use of cards instead of cash – <a href="https://www.rba.gov.au/publications/bulletin/2023/jun/cash-use-and-attitudes-in-australia.html#:%7E:text=Cash%20payments,-The%20CPS%20suggests&text=In%20value%20terms%2C%20the%20cash,cent%20by%20value%20in%202022.">only 13% of Australians use cash</a>, dropping from 27% in the last five years – these extra charges have become mainstream. However, as was highlighted by National Australia Bank chief executive Andrew Irvine during a <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/FinancialAbuse">parliamentary inquiry</a> into bank charges last week, they are often applied, in varying amounts, by businesses for reasons not always in line with their original purpose. Irvine slammed as <a href="https://www.afr.com/companies/financial-services/credit-card-surcharges-should-be-banned-or-regulated-nab-boss-says-20240830-p5k6jm">“outrageous”</a> a 10% surcharge he was forced to pay when he recently bought a cup of coffee at a Sydney cafe. “I don’t like the lack of transparency and lack of consistency,” he said. But most Australians are making these extra payments every day, without question. So how did this end up happening – and what can you do about it? <h2>Card surcharges in Australia</h2> At the start of this century, payments for goods and services were mainly made by cash, paper cheques, credit and debit cards. The first two of these options would eventually be deposited into a bank account by the merchant who ran the business. The latter two would be processed by the bank or financial institution which would charge the business a merchant service fee. For debit cards this might be a fixed fee. But for credit cards it would be proportionate with the value of the goods or services. The Reserve Bank of Australia became concerned the use of credit cards was greater than that of debit cards and <a href="https://www.rba.gov.au/publications/consultations/201106-review-card-surcharging/background.html">introduced surcharging in January 2003</a>. The intention was to lower the cost to the merchant of accepting debit cards and change customer behaviour. This has been achieved, as both the volume and value of paying by debit cards now exceeds the volume and value of paying by credit cards. However, the reality in 2024 is that card surcharges have become commonplace, and in a wide variety of payment situations. <h2>It’s estimated to cost us billions</h2> It is difficult to calculate the total cost of surcharging to Australian consumers since they became legal more than 20 years ago, because the rates charged vary widely. But at last week’s inquiry, Labor MP Jerome Laxale suggested it added up to <a href="https://www.smh.com.au/money/banking/card-surcharges-are-costing-us-billions-but-can-they-be-avoided-20240830-p5k6o8.html">A$4 billion</a> in the last year. Surcharges can be imposed by small to medium enterprises such as your local cafe, doctor’s surgery, your energy supplier, or when you use a card to pay your council rates. As an example, my rates are payable by card, with a surcharge of 1.10% for Mastercard and Visa credit, and 0.55% for eftpos and Mastercard and Visa debit cards. <h2>When surcharges can be applied</h2> Many merchants charge the same rate for all their card payments and some fail to alert customers to the extra fee before accepting the payment at their terminal, which they are required to do. Indeed, even on a receipt for payment, the surcharge can be described by the merchant as a “handling” or “merchant” fee. The Australian Competition and Consumer Commission <a href="https://www.accc.gov.au/consumers/pricing/card-surcharges">(ACCC)</a> regulates surcharging and demands the merchant prove a surcharge is justified. Furthermore, the ACCC says if there is no way for a consumer to pay without paying a surcharge – that is, they can’t pay by cash or cheque – then the business must include the surcharge in <a href="https://www.accc.gov.au/business/pricing/price-displays#toc-display-of-surcharges">the displayed price</a>. <h2>Penalties for misuse</h2> The ACCC can take merchants to court to enforce these regulations and there have been some examples of this in recent history. In July 2021, <a href="https://www.accc.gov.au/media-release/nine-entertainment-pays-penalties-for-alleged-excessive-payment-surcharges#:%7E:text=The%20ACCC%20alleged%20that%20these,Deputy%20Chair%20Mick%20Keogh%20said.">Nine Entertainment paid penalties totalling $159,840</a>, plus $450,000 redressing customers, for charging subscribers and advertisers excessive surcharges. The ACCC specifies that the surcharge must not be more than it costs the merchant to use that payment type. As guidance to the merchants, it also offers <a href="https://www.accc.gov.au/consumers/pricing/card-surcharges">the average costs for different payment types</a>: eftpos less than 0.5%, Mastercard and Visa Debit 0.5%–1% and Mastercard and Visa credit 1%–1.5%. However, despite the ACCC setting guidelines for the amounts that can be charged, many surcharges are above this guidance and in some cases more than 2.0% for all cards. Some merchants do charge different surcharging rates, depending on the cards they accept, be it eftpos, Mastercard or Visa. In theory, the surcharge rate is meant to be determined by the merchant service fee, which is negotiated between the merchant and their bank. Larger merchants, such as the supermarkets, department stores and energy companies, can negotiate low rates (reportedly as low as one cent a transaction). But smaller merchants with less negotiating clout will have higher service fees. The arrival of new payment players, such as <a href="https://www.forbes.com/advisor/business/software/square-vs-stripe/">Square and Stripe</a>, has offered businesses an alternative banker of card payments, which can then use surcharging as part of their merchant service fees. <h2>Surcharging overseas</h2> The <a href="https://europa.eu/youreurope/business/finance-funding/making-receiving-payments/electronic-cash-payments/index_en.htm">European Union</a> already has a long-standing ban on surcharging, while in the United States, surcharging is illegal in some states. Other countries, including the United Kingdom, have tried surcharging on card payments, only to abandon them as it was rorted by some merchants and became an unnecessary expense for consumers. <a href="https://bluenotes.anz.com/posts/2023/07/anz-news-surcharge-steve-worthington-australia#:%7E:text=In%202018%20the%20UK%20Treasury,their%20hard%2Dearned%20money%E2%80%9D.">A statement</a> released by the UK Treasury when it banned the practice in 2018 described surcharges as <blockquote> Hidden charges for paying with a debit or credit card, which will help millions of UK consumers to avoid rip-off fees when spending their hard earned money. </blockquote> <h2>What can you do about it?</h2> Before surcharging was allowed by the Reserve Bank in January 2003, acceptance by merchants of payments was just another cost of doing business. And it seems many consumers have just accepted surcharges as part of their transactions. There are ways to avoid them, the most obvious being to use cash. Using eftpos involves charges, but they are less than those imposed on credit and debit cards. The Reserve Bank is working on implementing a so-called <a href="https://www.rba.gov.au/payments-and-infrastructure/debit-cards/least-cost-routing/#:%7E:text=What%20is%20least%2Dcost%20routing,'merchant%2Dchoice%20routing'.">“least-cost routing”</a> system that defaults to the lowest cost network when processing payments. Unfortunately, this is yet to be widely adopted by businesses.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/237964/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/steve-worthington-138">Steve Worthington</a>, Adjunct Professor, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/surcharges-are-added-to-most-purchases-but-what-are-the-rules-behind-these-extra-fees-237964">original article</a>. </div>

Money & Banking

Dave Hughes sets the record straight over famous Block house purchase

Dave Hughes has hit back at long-standing rumours that he grossly overpaid for his house in Melbourne at The Block auctions. The radio host addressed the speculation on 2DAY FM’s Hughesy, Ed & Erin breakfast show, as his co-host Erin Molan queried him about how the investment property was performing. In 2017, Hughesy bought the five-bedroom home in Elsternwick, built by contestants Josh and Elyse on Nine’s long-running reno show, for $3.067 million: a whopping $447,000 over the reserve. Given the steep increase of the price, the purchase of the house led to a lot of talk that Dave Hughes had overspent. Molan told her co-host on-air that a recent value estimate of the property that she’d found online put the home at $3.4 million. Six years on from his purchase and with inflation, stamp duty and other factors weighted, Hughes noted that that $300,000-odd increase in value would actually put him at a loss. However, Hughes said he had recently had the house valued himself, and the news was much better: He was told it is currently worth around $5 million. After the purchase of the house, even Hughes himself conceded that he may have spent much more than what the house was worth. In an interview with Stellar magazine in February 2018, he said that the bank had valued the property at “much less” than he paid. “I went to get a bank loan the other day and they haven’t valued it the same as I paid for it, which is fine, but annoying because there were five bidders,” he said. He said it was “enough less that it made me annoyed”. “For f**k’s sake … I just think it’s good value and in a few years’ time people are going to be going, ‘Well, f**k, didn’t he do well with it!’ I am playing the long game, all right? That is what I say to my wife, anyway.” In September of 2018, he told his then-co-host Kate Langbroek that he’d “copped so much flak” over the purchase. He said, “It was ridiculous and it’s gone on and on and on. A lot of experts weighed into my purchase … There are articles that have been written all year having a go at me. One article from one mob called Property One or something, they had a dinner party discussion about how I paid too much.” Image credits: Nine

Money & Banking

Sweet reason for Ray Hadley's big property purchase

2GB broadcaster Ray Hadley has purchased a stunning Central Coast property with his wife, Sophie. The seaside retreat is situated on the Bouddi Peninsula in New South Wales, right on the water’s edge of Pretty Beach, and boasts impressive views across Brisbane Water - views that a balcony accessed by the living, kitchen, and dining space makes the most of. The property has five bedrooms, allowing plenty of space for Hadley and Sophie to host their visiting family members - and most importantly, their grandkids. Hadley, who currently resides in the northwest of Sydney, has four children with five grandchildren from them. And, in happy news for the family, another on the way. He regularly provides his radio listeners with updates on the growing brood, with a focus on the youngest generation - all of them five and under - who mean the entire world to him. As he told 9Honey, “before I had grandkids five years ago, mates would say, 'you won't believe the difference it makes' ... it's basically changed my life. "Five years ago I had none, now I've got five and another one on the way. They basically are my life. "I just adore them, every one of them, and they've all got different personalities, they're all different people.” He went on to share that the youngest is learning to walk and talk, while the others are prepping for school, with his eldest granddaughter even going so far as to ask him not to work, and to instead come along for her first ever school drop-off. “Just the fact that she asked me to do it made me feel 10-foot tall,” he shared. And the new property will give him the chance to spend more time with them, serving as a midway point for sleepovers, after years of the radio host travelling up the M1 from Sydney to be with them. It isn’t the first time Hadley has dipped his toes into the real estate market, either, with the 68 year old having downsized from his acreage after he turned 66, moving for the first time since the mid-1990s. The home isn’t even his first coastal retreat, with Hadley having snapped up a property on the Gold Coast in 2016, and planning to make an upgrade once again at Main Beach. Though for the time being, he may be a little busy settling into his new home, and maybe even treating himself and Sophie to a night out at their friend John Singleton’s nearby eatery. Images: realestate.com.au, Getty

Real Estate

Garden gurus around the world react to Jamie Durie’s stunning purchase

Located between Kyneton and Daylesford in Victoria’s Central Highlands, the incredible 50-acre Stonefields property was listed through Michael Gibson at Forbes Global Properties, with an asking price of between $8 million and $8.8 million. Purchased as cow paddocks in 2004, Stonefields now features a four-bedroom house, a 16-metre pool with valley views, a chef’s kitchen along with a separate guesthouse and office – all overlooking one of Australia’s best country gardens, complete with Harold, the roaming peacock. Owned by legendary landscape designer Paul Bangay – green thumb to the stars – it’s now set to be passed to longtime gardening pal Jamie Durie for reportedly more than $11 million, with plans to transform into a luxury retreat. Listing agent Michael Gibson, of Forbes Global Properties, declined to comment on the particulars of the price, but <a href="https://www.nine.com.au/property/news/jamie-duries-11-million-deal-for-the-cow-paddock-that-become-one-of-the-worlds-greatest-gardens/02ca77cc-88d8-4a05-b1ee-de194c41ef96" target="_blank" rel="noopener">NineNews</a> reports that whispers in the market are the deal is worth upwards of $11 million. The transaction includes a neighbouring property which contained Stonefield's guest accommodation, to complete a large parcel which Michael confirmed will eventually become Opulus Hotels' newest luxury resort. Paul told Nine when the property was listed in November last year that it was time to pass on the keys to his personal "paradise". "I don't want to talk for the developer but I understand their vision and I think it will be absolutely fabulous," he told Nine. "I think they will do a beautiful job." Paul also said that when he posted news of the listing on his Instagram account, he was floored by the "extraordinary" response from garden lovers around the world. "I didn't realise it was so loved worldwide. It is a garden that belongs to the world - it is the sum of all of my travels and inspirations." Images: Forbes Global Properties

Real Estate

Royal fans react to Kim Kardashian's purchase of Princess Diana's jewellery

The Attallah Cross, famously worn by Diana, Princess of Wales, has reportedly been purchased at auction by none other than reality TV star Kim Kardashian. Kim, best known for her time on Keeping Up With the Kardashians, purchased the piece for $197,453 USD (approximately $284,654.04 AUD) at the Sotheby’s Royal & Noble sale. The necklace was seen on Diana at a Gala for Birthright, now known as Wellbeing of Women, in October 1987. Diana paired the piece with a purple velvet Catherine Walker gown. It features 5.25 carats of circular-cut diamonds that accentuate square-cut amethysts in a cross formation. It was designed by luxury jewellery designer and former crown jeweller Garrard, who made numerous pieces for Diana. Most notably, her iconic sapphire and diamond engagement ring, now in the possession of Catherine, Princess of Wales . Naim Attallah, first owner of the cross, loaned it to her several times throughout their friendship. as friends with Diana and loaned it to her several times. According to reports, the cross hasn’t been seen in public since it was last worn by Diana, who was the only one to ever don it. New owner Kim Kardashian is no stranger to sporting vintage pieces. Most recently, Kim divided the internet when she wore the crystal-encrusted dress Marilyn Monroe wore to serenade US President John F Kennedy with “Happy Birthday” in 1962. The internet erupted with outrage when the news of Kim’s jewellery purchase broke, with critics quick to share their opinion. “Kim Kardashian owning Princess Diana’s cross necklace has put me in a vile mood,” came one gripe. <blockquote class="twitter-tweet"> Kim Kardashian Acquires Bejeweled Cross Worn By Princess Diana For $197,453 <a href="https://t.co/wglEwLyutg">https://t.co/wglEwLyutg</a> <a href="https://t.co/uz1VqiJT8x">pic.twitter.com/uz1VqiJT8x</a> — Forbes (@Forbes) <a href="https://twitter.com/Forbes/status/1615825124472537088?ref_src=twsrc%5Etfw">January 18, 2023</a></blockquote> One individual referenced a popular internet meme featuring Kardashian, in which she was seen crying in the ocean after losing a diamond earring. Doubtful about the necklace’s future, they wrote, “and next week it’s gonna be ‘Kim Kardashian has lost Princess Diana’s iconic diamond cross necklace in the ocean’.” Some fans took the time to point out that the cross was never actually owned by Diana, with one tweeting, “Princess Diana did not own it. The jewellery company let her borrow it for an event.” A few seized the opportunity to try and drag Harry and Meghan into the mix, while some tried to make light of the situation amongst the outrage, bringing it full circle with a throwback to the dress saga with, “sorry Marilyn Monroe, Kim Kardashian is now taking style cues from Princess Diana.” Images: Getty Images

Beauty & Style

Mining workers win $53 million jackpot after “spur of the moment” purchase

It’s said lightning doesn’t strike twice but apparently the lottery does, after a group of miners from Kalgoorlie-Boulder won a share of the $160 million Powerball jackpot - the second time a winning ticket has come from the West Australian mining town. The group of 20 workers had formed a lottery syndicate, chipping in $100 each and walking away with a slice of $53 million in division one winnings on Thursday. With each worker pocketing about $2.65 million, the win has come as a shock to them and their boss, who quipped that he would “run after them” and steal their ticket if they didn’t come back to work. Peter, one of the lucky winners, told <a href="https://www.6pr.com.au/exclusive-record-powerball-winner-says-goldfield-syndicate-had-never-played-lotto-before/" target="_blank" rel="noopener">6PR Radio</a> that the win was “still sinking in”. “I only thought we’d won the second division,” he said. “This was a one-off because it was a big draw … it was a spur of the moment thing. “I couldn’t believe it, I checked the ticket about 10 times.” He went on to tell 9News that it had been “life changing” for all of them and that nobody believed he had won since he’s “a bit of a joker”. Chris Wood, the miners’ boss, said he was still in disbelief at the news too. “They’re great workers; it is my best shift,” Mr Wood told the <a href="https://www.abc.net.au/news/2022-10-28/second-goldfields-powerball-winner/101591758" target="_blank" rel="noopener">ABC</a>. “I’m ecstatic. I’m very happy for each of them. I expect I might lose them, though.” Despite his concerns, one of the miners has already confirmed she would be sticking around after the win. “‘You know how they say, one Powerball and I’m out of here? Well, it ain’t true,” she said in a video shared on Facebook. “I’ve known since the start of my shift and I’m still loading trucks.” “So yeah, there’s 18 at my work who are now millionaires.” The group, colloquially referring to themselves as the “We Outta Here” Syndicate, pinned their winning tickets on the workplace pinboard, having purchased the winning ticket from a newsagency in Boulder, 600km east of Perth. They aren’t the first to rake in a massive lotto win in the town either, after 250 Kalgoorlie residents pooled their tickets to claim the $63 million jackpot in February. As for the remainder of the $160 million Powerball jackpot, it was split between two winners - a NSW dad and a man from Clyde, Victoria, who cried “tears of joy” upon hearing the news. “Oh my god, oh my god. I can’t believe this!” he cried. “Holy s**t! Far out! I’m absolutely speechless. “I never thought I’d get this phone call. This has changed my life!” The winning numbers for Thursday’s Powerball draw were 10, 4, 12, 18, 2, 34, and 7, with 7 being the Powerball number. Images: Getty Images / 7News

Money & Banking

Man purchases home for $1.50 - but there’s a catch!

A man struggling to enter the property market has revealed how he purchased his home for just $1.50 - but there’s a catch. Danny McCubbin, who is originally from the Gold Coast, wanted to upend his life once more and move from busy London. On his mind was a quiet, peaceful area where he could enjoy his life – and the small town in Mussomeli, Mussomeli, took his breath away. “I fell in love with this town,” Danny told news.com.au. Danny took a leap of faith and bought his home in 2019 for just $1.50 (plus a further 3000 euros for notary and inspection fees). However, a condition of the house was that he would have to renovate it within three years of purchase or he’d have to pay a further 5000 euros (AU$7,571) to the government. The pandemic threw a spanner in the works, making Danny’s mission to renovate his home almost impossible. Danny then decided it would be cheaper to purchase another home and renovate that. “I ended up buying myself a house for 8000 euros, which is less than the cost of my car. And I spent 5000 on it and renovated that,” he revealed. “That’s where I live now. It’s a beautiful place, it’s got a view of the mountains, it’s just perfect for me.” Danny offered his best tips to those looking to do the same: spend time in the city where you plan to buy, see as many houses as you can, bring a friend who knows a bit about engineering, and don’t fall for the view. Images: Instagram

International Travel

Video shows Rowan Baxter purchasing killing tools

A video showing Rowan Baxter purchasing the tools he would use to kill Hannah Clarke and their three children has played in court. CCTV showed Baxter at a local Brisbane Bunnings store buying zip ties, cleaning fluid and fuel at about 6 pm on February 17, 2020, just two days before the horrific murder. Wearing a black singlet and shorts, Baxter also appeared to wander around before paying for the items. Later that afternoon, Baxter called a men’s support helpline where he said he was the victim. "My wife, to be honest, it's almost like a game to put her in a better position for family court," he was heard saying, <a href="https://www.9news.com.au/national/inquest-into-hannah-clarkes-death-tracks-killers-movements-in-days-before-murder-brisbane-queensland/d882dce1-d321-4cd6-9791-0f37d4892e91" target="_blank" rel="noopener">Nine News</a> reported. "I'm not the one who has the problem. I'm just doing what I'm told. "I never even thought my wife was capable of doing anything like this." On 19 February, 2020, before Baxter set alight to the family car with Ms Clarke and their three children - Aaliyah, Laianah, and Trey - he was seen at a Caltex petrol station purchasing 4.6L of fuel and three Kinder Surprises. Ms Clarke was taking her three children to school when Baxter doused them with fuel. The three children died at the scene while Ms Clarke was taken to hospital. Baxter later stabbed himself with a knife and died. Ms Clarke suffered burns to 97 per cent of her body and, despite her injuries, was able to give police three statements about what happened. The inquest continues. Image: CCTV footage

Legal

Harry and Meghan secretly purchased domain names for Lilibet before birth

A spokesperson for Prince Harry and Meghan have confirmed that the couple purchased the internet domain names "Lilibet Diana" and "Lili Diana" before their daughter's name was approved by Queen Elizabeth. A spokesman for the Duke and Duchess of Sussex said they had purchased a "significant" number of domain names covering the different baby names they were soldiering, The Telegraph reports. After the admission, questions are being raised as to whether the couple asked for the Queen's approval for naming their child Lilibet, the monarch's own childhood nickname. The registering of several domain names suggest the couple had a Plan B if the Queen had not approved the name Lilibet Diana. The domain name lilibetdiana.com was registered in the US on June 4, The Telegraph reports. June 4 was the day baby Lilibet was born and two days before the announcement was made public. The domain name lilidiana.com was registered several days earlier on May 31 - indicating the baby girl’s name was well and truly settled on before her birth. It’s likely the domain names were bought to stop others from cashing in on the baby’s name, or to launch a foundation in her name later on. “Of course, as is often customary with public figures, a significant number of any potential names that were considered were purchased by their team to protect against the exploitation of the name once it was chosen and publicly shared," the spokesperson said. Lilbet Diana Mountbatten-Windsor was born at 11:40 am local time on June 4.

Family & Pets

ALDI shopper's grim warning after purchasing explosive appliance

An ALDI supermarket shopper has issued a warning to customers after a vacuum cleaner she purchased from her local store "exploded" and caused burns to her foot. Taking to Facebook, shopper Diana said her Easy Home Multicuclonic Vacuum Cleaner caught on fire and set off her smoke detectors at her home. The bagless vacuum cleaner has been recalled due to a defect that could see the motor overheat and result in a fire. However, Diana was unaware of the recall, leading to the unfortunate incident. “Just a caution for those of us who purchased the bagless vacuum last year,” wrote Diana on the <a rel="noopener" href="https://www.facebook.com/groups/1034012533313136" target="_blank">Aldi Mums</a> page. “Well today mine exploded and caught on fire, triggering the house smoke detectors and leaving me with burns to my foot. “According to ALDI, there was a recall of the bagless vacuums for this reason which I was not aware of. “Just thought I would put it out there for those who are not familiar with the recall.” A spokesperson for the company urged customers who still own one of the recalled appliances to urgently take it back to their local store. “It is unfortunate that this product has not met our strict safety and quality standards,” an ALDI spokesperson said. “We are actively encouraging anyone who purchased the Multicyclonic Vacuum Cleaner to return the product to any of our stores for a full refund. “We have been promoting this recall on our <a rel="noopener" href="https://www.aldi.com.au/" target="_blank">website</a>, in stores and on our Facebook page.” For more information on the recall, head <a rel="noopener" href="https://7news.com.au/lifestyle/recalls/aldi-easy-home-multicyclonic-vacuum-cleaner-recalled-over-fears-it-could-catch-fire--c-1852023" target="_blank">here</a>.

Legal

"A horror movie": Woman's shock at unwanted guest in purchase

A Woolworths customer has found the funny side to a very disturbing find in her gingerbread house. Shopper Katie explained to Facebook that she found a massive huntsman, complete with egg sac, in a readymade gingerbread house that was purchased from her local supermarket. “Wait Woolworths, this isn’t what I ordered?” laughed Katie. “Only in Australia, only in #2020. “Buy a readymade gingerbread house they said, it’ll be easier than building one they said! “Seriously I don’t say this often but: why me?” <img style="width: 500px; height:281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7839257/woollies.jpg" alt="" data-udi="umb://media/682540a519f74cd3aa37b560b2114a72" /> <div class="post_body_wrapper"> <div class="post_body"> <div class="body_text redactor-styles redactor-in"> She then described how she found it in the packaging. “It was like a horror movie,” she said. “I was making myself a cup of tea, I glanced up at the gingerbread house thinking, ‘Hmmmm I wonder if I can sneak a piece off without the kids noticing.’ “Then I saw it, the tip ... of a leg, and then another leg and then another, and then the body, carrying a mother trucking egg sac. “I’m done!” People were disgusted with the find. “Are you SERIOUS? It’s INSIDE THE BOX,” wrote one. “OMG! Complete with egg sac so it’s been in there a long while!” Katie said she moved the spider outside, and a Woolworths representative apologised for the "scary surprise". “Oh no Katie - this critter just wanted a home, but this is definitely not the right one for her!” the representative said. “Thanks for letting us know, and we apologise for the scary surprise. After all, it’s Christmas, not Halloween. “Please feel free to return the gingerbread house to our store service desk for a replacement - one without an added houseguest!” Photo credits: Facebook </div> </div> </div>

Family & Pets

Mystery family breaks Australian art auction record with one purchase

<div class="body_text redactor-styles redactor-in"> A large Brett Whiteley painting was sold for $5 million in just five minutes to an unidentified Sydney family – for a grand total of $6.136 million including the buyers' premium charged by the auction house. The sale of the painting set a new record price for an Australian artwork at an auction, and the new owners – a family from Sydney's lower north shore – remain anonymous to the wider public as they have chosen not to be revealed as yet. The painting, Henri's Armchair, measures almost 2 metres high by 3 metres in length and is a reference to French painter Henri Matisse, who Whiteley admired. Elizabeth Evatt sold the painting and hoped that a public institution would buy it so it could be enjoyed by the public. "In parting with it I'm coming to terms with parting with Clive two years ago, it's a huge wrench," she said. "To have this amazing painting in our life everyday was magnificent," Mrs Evatt said. Her husband, art dealer Clive Evatt, died in 2018 and bought the painting directly from Whiteley in 1975. She explained the story behind her husband acquiring the painting, as it had never been offered for sale before. Her late husband stopped in at Whiteley's house on his way home from the races and offered to buy the work on the spot. He led Whiteley out to his car, popped open the boot of his car and showed him his winnings from the racetrack. The pair then grabbed the money, counted it together and the sale of the painting was done and dusted. The auctioneer, Justin Turner, said he felt "really great" after the sale. "This has been an amazing year for the art market, it took us all by surprise, we expected the worst when COVID hit," he said. "I thought if we could get through the year without laying off staff that would be a success," he said. The artist's ex-wife Wendy Whiteley, who controls his estate, said before the auction that she hoped for a good result. "I'm not involved with it at all and I certainly can't afford to buy it," she said. Photo credits: <a rel="noopener" href="https://www.msn.com/en-au/money/markets/brett-whiteley-painting-breaks-australian-art-auction-record-selling-for-dollar6136-million/ar-BB1bnx5x?li=AAgfYrC" target="_blank">abc.com.au</a> </div>

Money & Banking

Hilarious mistake found in ALDI Special Buys purchase

An ALDI shopper has spotted a fashion fail in her recent Special Buys purchase. Leonie took to the Aldi Mums Facebook group to share her Organics By Serra Women’s Organic Cotton Long Sleeve Tee, which she purchased from the German supermarket a couple of weeks earlier. She had opened the shirt to wear it to work, but soon discovered that one sleeve is significantly shorter than the other. “I am pretty sure my wrist is going to be feeling the cold today,” she wrote. “I bet someone had a laugh when they made and measured this!” <img style="width: 500px; height: 281.25px; display: block; margin-left: auto; margin-right: auto;" src="https://oversixtydev.blob.core.windows.net/media/7836689/aldi-insert.jpg" alt="" data-udi="umb://media/1d69f752052f4b3d89213ae40debe9c5" /> Her post attracted hundreds of comments, with many joking about the mistake. “At least you don’t have to roll one sleeve up when doing the washing up,” one wrote. “Well it does say long sleeve not long sleeves!” another commented. “It's a new fashion trend don't you know?” one joked. “Like the half shirts covering nothing but boobs or the old fashioned one-shoulder tops. The new trend is a half covered arm. Aldi is bringing a new style in.” Leonie said she ended up changing into a different shirt because “the unevenness would have driven me nuts”.

Beauty & Style

Amsterdam considers banning tourists from purchasing cannabis

Amsterdam is looking into banning tourists from cannabis cafes in a bid to combat over-tourism. A survey of visitors commissioned by Mayor Femke Halsema revealed that more than half visited the 850,000-strong city because they wanted to experience a cannabis-vending coffee shop. Most of the respondents (57 per cent) said the Dutch capital’s coffee shops influenced their decision to come, and 11 per cent said they <a href="https://www.lonelyplanet.com/articles/amsterdam-cannabis-tourist-ban">would not return</a> if they could not access the cafes. About 29 per cent said they would seek out other ways to obtain their drug fix, such as getting a resident to make a purchase on their behalf or through street trading. In a letter released in July 2019, ahead of the survey, Halsema suggested that the coffee shops can put “the quality of life in the city center under pressure”. Following the publication of the survey results, Halsema said the city government should work on “<a href="https://edition.cnn.com/travel/article/amsterdam-tourist-cannabis-usage/index.html">reducing the attraction of cannabis to tourists</a>” and making the Amsterdam cannabis market more transparent. Earlier this month, the city announced that group tours of the main Wallen red-light district and other areas containing sex workers’ windows would be <a href="https://www.lonelyplanet.com/articles/amsterdam-red-light-district-tours-ban">formally outlawed from April 1</a>. Deputy mayor Victor Everhardt said the tours were “disrespectful to see sex workers as a tourist attraction”.

International Travel

How to find a pain-free mortgage

Buying property can be daunting as well as exciting. After all, it’s probably the biggest investment you’ll ever make and paying off a mortgage is a responsibility you’re likely to be tied to for many years. On the plus side, home ownership has been steady at about 70% in Australia for decades, so most of us are taking the plunge. And although interest rates may rise, competition between lenders remains heated, making it a good time to get a foothold on the property ladder. ‘It’s a great time to be applying for a loan. There are offers out there that I haven’t seen in all my years of being a broker,’ says Melbourne-based Mortgage Choice broker Neil Gorman. ‘It’s no harder to get a loan than it was pre-GFC. In fact, because we’re now seeing some big lenders returning to lending 95% of the value of the property, it’s become a lot easier for first homebuyers than it was previously. Avoid credit risk We’ve all missed a payment deadline for a utility bill or credit card, but if late payments are a regular thing or you’ve got a default recorded on your credit file, look out. ‘One late payment won’t be such an issue but if you’re regularly making late payments, it may reflect on your ability to repay your mortgage,’ says Neil. Lodging too many credit applications, whether for a loan or a new credit card, can also work against you, he warns. ‘The more applications you’ve lodged, the lower your credit score is. As a result your loan application may never see the light of day.’ It can take just four to six credit applications within the past six months to leave you tarred with the ‘bad credit risk’ brush. Broker or bank? According to the Mortgage Choice 2011 Recent First Homeowner Survey, 40% of respondents preferred to see a mortgage broker for loan advice, while 19% opted for a lender. Using a broker minimises research time because brokers have access to hundreds of loans, can suggest ones that suit your needs and budget, and will secure the loan on your behalf. Most brokers don’t charge fees and although some may get paid different commissions depending on which lender you choose, many receive the same commission regardless of who you sign up with. Sticking with the bank is easier if you have an existing relationship with them, already hold a mortgage there, or want to release equity in one property in order to buy another. Purchase for investment Scott, a senior analyst, lives in Sydney and bought his second property, an investment flat in Queensland, five years ago. He obtained the mortgage through his bank. ‘Getting the mortgage was relatively easy but I needed quick approval, as I’d already found the property and wanted to use the equity in another property I had,’ says Scott. ‘I wanted the flexibility of several smaller loans that could be paid off at different periods, without the need to refinance or pay early discharge fees. 'I also wanted a fixed interest rate and the option to repay more. ‘I’d been with this bank for a few years and had built up a relationship with my personal banker. Their solution gave me confidence that I didn’t need to research other options. ‘The initial approval was verbally provided in the first meeting and I signed the mortgage papers a week later,’ says Scott. The mortgage toolkit Arm yourself with as much information as possible before you hit the For Sale ads. Do the sums. You’ll find a dizzying array of mortgage calculators online, which can help you work out everything from your borrowing limit down to what your basic loan repayments might be. Visit mortgagechoice.com.au or yourmortgage.com.au/calculators. Check your rating. Head online to My Credit File (mycreditfile.com.au) to request a copy of your credit file, which is used by lenders to determine your credit worthiness. The report costs $50 and will outline loans you’ve previously applied for, bad credit or defaults that may be lodged against you. Get a grant. The First Home Owner’s Grant (firsthome.gov.au) is a one-off payment of up to $15000 available to first homebuyers who satisfy the criteria. There is also a range of different concessions depending on which Australian state you live in. Boost your savings. A First Home Saver Account (FHSA) makes saving for a deposit easier for eligible applicants because the government will pay up to 17% of your personal contributions for the financial year, up to a yearly maximum. Parents and other family members can also contribute to your FHSA. Visit ato.gov.au for more info. Choose the loan. Should you go with fixed to protect against interest rate rises, or would you be better off with a part fixed, part variable loan? The Fixed vs Variable Interest Rates factsheet from Mortgage Choice can help you understand the difference. The assessment process Securing a mortgage is dependent on a number of factors and when you apply for a loan you give a lender approval to dig into your finances and credit history. Generally, lenders tend to focus on what are known as the four Cs of lending: Character is a measure of your stability, so if you bounce from job to job you may be viewed as high risk. If you’re thinking of changing jobs, it’s best to apply for a loan before you leave the old one. ‘The lender looks at whether the applicant has been with the same employer for 6 to 12 months and in the same occupation for a couple of years,’ says Neil. ‘And you’ll need to have been self-employed for two years before a lender will consider your income.’ Credit is the ‘big black box’ between you and the potential lender. It’s an automatic system that scores you before an actual physical assessor even looks at your application, according to Neil. ‘The black box has a load of equations and predictable questions in it which are asked. ‘These questions include the number of credit enquiries or loan applications you’ve made, as well as the loan to value ratio, your income and so on,’ says Neil. Capacity refers to whether you have the means to make the repayments and your lender will make sure of it before they give you the mortgage nod. ‘Lenders look at your income and expenses and work out if there’s enough left over to repay the debt,’ says Neil. The number of kids is taken into account as well as high credit card limits. Collateral refers to a measure of the value, condition and marketability of the property you’re intending to buy. ‘Banks only lend 90 to 95% of the value of the property so you need a deposit plus extra money to cover costs,’ says Neil. Republished with permission of <a href="http://www.handyman.net.au/find-pain-free-mortgage">Handyman.net.au.</a>

Legal

Accidentally made an in-app purchase? Here’s how to cancel it

Lisa Du is director of <a href="https://readytechgo.com.au/" target="_blank">ReadyTechGo</a>, a service that helps people gain the confidence and skills to embrace modern technology. Did you accidentally make an in-app purchase? Or sign yourself up to a subscription? Here’s how to cancel your subscription. Recently, I decided it was time to head back to the gym this week, and thought I would download a free "Workout" app. I had a Samsung smartphone before my iPhone, and used a free workout app. The app allowed me to pick parts of the body I wanted to train, and it would provide a series of exercises. I assumed I could get this same app on my iPhone. Wrong. I downloaded two apps, and both of them required me to pay to "unlock" these workouts. The third app I downloaded got me past the first screen, and stated a free trial for a week, followed by $13.99 USD a week to subscribe to the app. I just needed some handy hints on working out, so I kept clicking the prompts, and next minute, I had enabled my Apple ID to billed $13.99 USD a week, after my free trial. On my Samsung phone, I didn't connect my credit card to my Playstore account, whereas on my Apple iPhone, my App Store account is connected to a credit card. Cancelling this subscription wasn't obvious to me, and I'm sure many of you have accidentally made an in-app subscription purchase, so here are the steps to cancel your subscription: How to cancel your subscription to an app: 1. Tap on Settings 2. Scroll down, and tap on iTunes & App Store <img width="264" height="" src="https://gallery.mailchimp.com/e785dd9ba906ed79fad48bd7e/images/f0fca9af-5136-4a3c-8502-13a17667d0bf.jpg" class="mcnImage" style="max-width: 1242px; line-height: 100%; outline: none; vertical-align: bottom; height: auto !important;"/> 3. Tap on your Apple ID <img width="264" height="" src="https://gallery.mailchimp.com/e785dd9ba906ed79fad48bd7e/images/637edd8f-ca25-4c8d-8386-d9794c9007fc.jpeg" class="mcnImage" style="max-width: 1242px; line-height: 100%; outline: none; vertical-align: bottom; height: auto !important;"/> 4. Tap View Apple ID <img width="264" height="" src="https://gallery.mailchimp.com/e785dd9ba906ed79fad48bd7e/images/75029c8b-4759-4193-9971-7ad470b377e2.png" class="mcnImage" style="max-width: 1242px; line-height: 100%; outline: none; vertical-align: bottom; height: auto !important;"/> 5. Tap on Subscriptions <img width="264" height="" src="https://gallery.mailchimp.com/e785dd9ba906ed79fad48bd7e/images/9e659b82-87d0-40b7-9bbb-ca8a6ebd899f.png" class="mcnImage" style="max-width: 1242px; line-height: 100%; outline: none; vertical-align: bottom; height: auto !important;"/> 6. Tap on Cancel Trial Hope you found those steps handy, so that you cancel any trials before you get billed!

Technology

New method for purchasing flights set to be based on your wealth

Airlines are already able to use online data to vary the prices of a flight based on when a passenger books and how many searches they have done. Now, companies could customise their flight prices even more through a model called “dynamic pricing”, reported <a href="https://www.thesun.co.uk/travel/5693140/airlines-could-price-your-plane-ticket-based-on-how-rich-you-are-using-dynamic-pricing/" target="_blank">The Sun</a>. Dynamic pricing is used when an airline gleans personal information through internet cookies and customer account details to find out how much they earn, how old they are and the likelihood that they are taking a business trip. Airlines could even give a more expensive fare to customers who they think are richer, while those earning less could be given unique offers to entice them to book. John McBride, director of product management for PROs, a software provider for airlines such as Emirates and Lufthansa, said several airlines are now implementing this model. “A handful of large carriers [will] move toward dynamic pricing [in 2018],” he told <a href="http://www.travelweekly.com/Travel-News/Airline-News/Airlines-inching-closer-to-dynamic-pricing" target="_blank">Travel Weekly</a>. It is unconfirmed whether any Australian airlines will use this system. The Airline Tariff Publishing Company (ATPCO) is used by British Airways and KLM as a guide to price their fares, reported <a href="https://www.telegraph.co.uk/travel/news/dynamic-fare-pricing-airline-ticket-personalisation/" target="_blank">The Telegraph.</a> In 2015, ATPCO wrote a report on dynamic pricing, predicting that airlines would be price based on “who is asking”. Passengers may soon find that a search engine is offering a more expensive fare if it thinks you have a high-paying job. However, as it is early days for dynamic pricing, many are questioning if the system is legal or if it actually falls into discrimination. Richard Taylor from the UK’s Civil Aviation Authority told the Telegraph, “If a passenger believes this pricing model is discriminatory in some way, or breaches EU law, they would need to challenge it in a court of law. “A legal ruling would then ensue and be the basis for any follow-up enforcement action. “Passengers need to be made fully aware of what they are getting for their money.” Lufthansa told Sun Online Travel, “The Lufthansa Group takes data protection very seriously. Our fares are not calculated based on personal customer data.” What do you think of dynamic pricing? Share your thoughts in the comments below.

Travel Tips

Woolworths customers double-billed on purchases made in March

Woolworths has confirmed an issue with its payment provider has caused thousands of customers around the country to be double-billed for purchases in March. Customers flooded the supermarket’s Facebook page with complaints, with some reporting hundreds of dollars missing from their accounts. Woolies could not confirm how many shoppers have been affected by the system error, but the number is believed to be in the thousands. <iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpermalink.php%3Fstory_fbid%3D2109191602652682%26id%3D2085296131708896&width=500" width="500" height="235" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true"></iframe> <iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpermalink.php%3Fstory_fbid%3D2109187245986451%26id%3D2085296131708896&width=500" width="500" height="198" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true"></iframe> A Woolworths spokeswoman told News.com.au: “We have received confirmation from Cuscal, one of our payment processors that service financial institutions, that due to an error at their data centre a limited number of Woolworths customers may have received incorrect transactions on accounts processed by Cuscal. “We are working closely with Cuscal and can confirm any payment errors will be corrected as soon as possible. We apologise for the inconvenience this may cause customers. If further information is required please contact 1300 767 969.” Have you been affected?

Money & Banking

New warning about online credit card purchases

Online shopping is undoubtedly one of the greatest innovations of the last decade or so. Convenient, easy and fun, it comes as no surprise that Aussies have fallen in love with internet purchases – in fact, last year, online sales <a href="http://www.afr.com/business/retail/online-retail-sales-top-20-billion-20160803-gqjv0r" target="_blank">exceeded $20 billion</a>. But experts have warned there’s a not-so-pleasant side effect to the phenomenon – credit card fraud. According to industry body Australian Payments Network, the number of transactions made using stolen credit card details in 2016 more than doubled since 2011, totalling $417.6 million. In fact, 78 per cent of the country’s total fraudulent purchases were made online. The industry’s 2016 Australian Payments Fraud Data Report also found a 13 per cent increase in card skimming fraud and discovered that for every $1000 spend using credit cards, fraud accounted for 74.7 cents – up from 66.9 cents in the previous year and 43.8 cents in 2012. Leila Fourie, CEO of Australian Payments Network, told the <a href="http://www.smh.com.au/business/consumer-affairs/online-credit-card-fraud-on-the-rise-accounting-for-78-per-cent-of-total-card-fraud-in-australia-20170802-gxnwd7.html" target="_blank">Sydney Morning Herald</a> that, while Australia’s level of credit card security was better than that of the UK and US, the number of fraudulent purchases is only likely to increase as more of us turn to internet shopping. “As Australia transitions towards even higher levels of online payments, customers and merchants need to increase security awareness,” she explained, adding that the introduction of authentication factors such as social media, <a href="http://www.oversixty.com.au/finance/retirement-income/2017/07/pins-will-soon-become-obsolete/" target="_blank">biometric</a> and geolocation data could improve customer security and lower the risk of fraud. Have you ever been the victim of credit card fraud? What changes have you made to protect yourself in the future? Share your story with us in the comments below.

Money & Banking

Are you ready for PIN-only purchases?

Do you know the personal identification number (PIN) on your credit card? If not, you’ll need to memorise it before August 1, when credit cards say goodbye to signatures.The final countdown has begun on the use of signatures when making a purchase with your credit card. Signing your name will be a thing of the past come August 1 when financial merchants around Australia will require a PIN number.It’s a move major banks say is faster, more convenient and more secure than a signature. Plus, when you travel overseas, some retailers already require a PIN number as authorisation for purchases.The Industry Security Initiative – a collective of Australia’s major financial institutions and card companies – says it’s an industry-wide move focused on expanding PIN numbers as payment authorisation at the point of sale and to phase out the signature on both credit and debit cards.The phasing out period will have a short transition timeframe from the beginning of August. After this, you’ll need to enter a PIN when making a purchase.A safer way to pay The initiative hopes to make Australia’s payment system safer. According to the Industry Security Initiative and its PINwise resource, there is only a one in 10,000 chance of someone guessing your PIN number, making this method a safer way to purchase items.When using a PIN rather than signing, the transaction is encrypted and sent in real-time to your bank to be authorised. Also, using your PIN can help protect against fraud due to lost or stolen cards, because someone looking to use your card would need both the card and your PIN to make a purchase.The country’s 800,000 merchant payment terminals will undergo a software update to no longer accept a person’s signature as a main form of card authorisation. There will be no change to contactless or online transactions, and only in some circumstances will a signature still be a valid form of verification. For example, when using a card issued by an overseas bank.What’s my PIN? If you’re unsure of what your PIN is, check with your bank. They’ll be able to provide you with a PIN for your debit or credit card. If you’ve had your credit card for a long time and have forgotten what the PIN number attached to it is, just give your bank a call or go into a branch and they’ll be able to reissue you with another number. The bank can issue your PIN over the internet, by phone or via mail.You’ll need to remember the PIN for each of your debit and credit cards, so it’s a good idea to start trying to memorise your numbers now. However, if you’re having trouble remembering your PIN, you can change it to a four or six digit number that you’ll find easier to remember. Give your bank a call to ask about the process of changing your PIN. Head to <a href="http://www.pinwise.com.au" target="_blank">www.pinwise.com.au</a> for more information.

Money & Banking

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How to find a pain-free mortgage

Accidentally made an in-app purchase? Here’s how to cancel it

New method for purchasing flights set to be based on your wealth

Woolworths customers double-billed on purchases made in March

New warning about online credit card purchases

Are you ready for PIN-only purchases?

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