Throwing money away ... the Government may use regulation to guard against over-surcharging. Picture: Supplied. Source: Supplied

The minister responsible for consumer affairs, Bruce Billson, told News Corp Australia the FSI fee proposal was “positive” but it was unclear to “what extent it would be more effective” than the status quo.

Not sure ... the government isn’t convinced the FSI proposal would be more effective than the status quo. Picture: AP. Source: AP

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Existing arrangements are meant to contain surcharges to the “reasonable cost of acceptance” but have failed to prevent payment imposts of as much as $17 or 8.5 per cent on a $200 return airfare. Fees on a concert booking or accommodation can also be several per cent.

Slammed .. Jetstar has long been criticised for hefty surcharges. Picture: News Corp Australia. Source: News Corp Australia

Among all merchants the average cost of accepting Visa or Mastercard credit cards is less than 1 per cent; for American Express, it’s less than 2 per cent. Major merchants would likely pay lower than average rates.

Despite consumers being fleeced of hundreds of millions of dollars, the FSI report recommended against “creating new penalties to discourage over-surcharging”.

Mr Billson has not been persuaded.

Charges .... the average cost of a merchant accepting Visa or Mastercard credit cards is less than 1 per cent; for American Express, it’s less than 2 per cent. Picture: Supplied. Source: Supplied

“There is clear evidence of some gaming going on in the current arrangements,” Mr Billson said. “It’s bleeding obvious who’s doing the wrong thing. It’s not across the entire economy. It’s a handful of … recalcitrants.”

Not persuaded ... “There is clear evidence of some gaming going on,” Bruce Billson says. Picture: Picture: Derrick den Hollander Source: News Corp Australia

So to support the FSI proposal the Government is looking at what “reasonable regulatory steps can be taken to guard against over-surcharging”.

Process ... the government is looking at what “reasonable regulatory steps can be taken to guard against over-surcharging”. Picture: News Corp Australia. Source: News Limited

Choice campaign adviser Erin Turner said it was “great to hear that Bruce Billson still intends to pursue enforcement. For us, it’s essential”.

Mr Billson thought he had the answer — an extension of laws that ban lenders from profiteering on mortgage exit fees. That law allowed the Australian Securities and Investments Commission to force Westpac subsidiary Rams to repay millions of dollars to customers.

Mr Billson asked the FSI to evaluate the idea. It was dismissed in a single paragraph of the inquiry report.

Mr Billson told News Corp Australia he would request a detailed explanation from Treasury boffins who helped former Commonwealth Bank CEO David Murray compile the FSI report.

Even if the explanation was convincing, he said he would seek alternative solutions from the experts — or others — to “bring miscreants to account”.

“If it’s not the answer, what should it be? I’m very open to people’s ideas.”