CHOICE membership

Zippay payment was surcharged 7%

Heading Out Hair & Beauty located in Balwyn North charge their clients a 7% surcharge for using zippay.

There is no advertising or information that the 7% is charged until you want to use Zippay. And zippay state that Heading Out Hair & Beauty should not charge this surcharge.

Customers need to be aware of these 7% charges.

Furthermore, you have to ask for the receipt for the sneaky unethical charge to be disclosed. If you use zippay they do not provide a receipt.


This is overcharging and something the ACCC has targeted in the past. The fees Zippay charges can be found here:

It appears that the maximum fees Zippay charges merchants if 4%, so assuming the hair dresser is on the maximum rate and not the minimum 2% rate, they should only be charging around 4% surcharge.

Here is a recent news article about excessive fees and charges…

and this is what the ACCC says.

I possibly would be approaching the merchant/hairdresser advising that you believe the 7% surcharge for using Zippay is excessive and you would like the reimbursement of the additional surcharge paid above and beyond what they are charged by Zippay. If there is no resolution and one strongly feels the charges are excessive, one could also lodge a formal complaint with the ACCC.


Choice has also reviewed Zippay on the past…


@phb stole my thunder whilst I typed, hence my shortened version.

I would get ZipPay’s position in writing/email and use that to approach the business.

The only bit I might add is that it appears some payment systems (ZipPay?) might not be included in the excessive payment regime as the wording is always like

The ban restricts the amount a business can charge customers for using an EFTPOS (debit and prepaid), MasterCard (credit, debit and prepaid), Visa (credit, debit and prepaid) and American Express cards issued by Australian banks.

ZipPay is apparently not a credit card equivalent, but is a layby system, so they (and AfterPay) may have found a loophole – they are not credit, debit, or prepaid cards.

This is an interesting new avenue for our exploration. Please let us know what you do and how you go with it.


It appears that Zippay falls under the Financial Services Ombudsman.…so this may be another complaint avenue to explore.

If one believes that a retailer/service provider intentionally overcharged, one has the choice not to use their services again, no matter how good they are.


This is also what Zippay says about customer fees on their website…

It is interesting to note…That’s it, you won’t find any other fees hidden in the small print

It appears that there are in fact hidden fees which can be charged by merchants. The website could be misleading or terms of use should be amended to include a statement with something like ‘merchants may charge additional fees for using Zippay. Merchants should be contacted before commissioning of services to determine what additional fees may be applicable.’

Based on this, you could also be within your rights to request reimbursement of the whole of the 7% surcharge imposed either from the merchant and/or Zippay.

The website states in relation to merchant costs…

There is no indication that Zippay expects merchants to pass on merchant fees. This is unlike say the Commonwealth Banks Mastercard where the conditions of use state ‘Third parties may impose a fee for use of a card.’

In any event, these fees are unacceptable and unreasonable especially when the Zippay website is silent on these ‘hidden’ fees and the merchant didn’t openly disclose the fees at the time of the transaction (if in fact this is the case).



Thanks for the report @AJMiles. We’ll keep this in mind the next time we address excessive surcharging :+1:


You could probably also point out to the merchant that ZipPay likely (I know AfterPay does) expressly disallow a vendor to surcharge to customer anything for choosing this payment method.


yes much better for the company to charge 70 people $1.00 extra so the one person buying the fridge with Zippay doesn’t have to pay extra for using the service

1 Like

While your solution would work, it doesn’t resolve the Zippay merchant fees which are imposed on the retailer and then which the retailer chooses to impose in its customer(s). It would be better for the merchant fees to be addressed, so that the impacts on the end consumer(s) are minimised.

I can’t imagine that Zippay costs for processing the purchase are around 2-4% (or the retailer’s costs being 7%) when the rest of the credit industry are <2%.


I agree they don’t have a high processing cost and it would be something similar to the rest of the industry. But Zippay do not charge interest on the debt/transaction. It is a single % based fee imposed and they choose to put that impost on the merchant rather than the consumer. If the consumer then defaults on a payment they are then required to pay a fee for that late or missing payment which is not imposed on the merchant.

For the merchant there are benefits ie they get an immediate sale with full reimbursement less the fee, they can sell to customers who might otherwise not buy the goods due to lack of money at the time, if they would have sold on account there are the administration costs avoided by getting “instant payment” and no recovery fees in the event of a failure to pay, if normally a layby then a similar administration cost is saved, possible failure to complete the layby and a saving on storage cost and space. For this convenience they pay a fee more than the admin/processing fee imposed by some others, but we must also remember this is the merchant’s choice to offer the “Zippay” selection not one being offered by the purchaser. The merchant who agrees to the T&Cs of Zippay to use their service and then wants to alter the way they then use the product outside the contract would be and indeed is in a clear breach of those conditions.


Oh I could believe it. When we contacted AfterPay they wanted a 6% slug from the vendor. I’m sure others in the same industry would be similar.


Why would anyone use a loan to pay for a haircut? If you are that broke, let your hair grow till you have cash.

Society has gone mad on loans. Businesses have gone equally mad on surcharges for secure payment.

Disclosure: I own Zip shares, and have so far shown a very handsome gain. I am gambling that people are not letting up on their desire to get further into debt for no reason.

1 Like

A hairdresser styling, perm and colour can set you back a least a hundred but more likely a couple of hundred dollars, these are not $25 haircuts. I can quite understand that someone on a day that is particularly important to look good on might want a “do” that is expensive, and the ability to manage that payment over 4 weeks or so might be much easier to deal with.

1 Like

Meh, don’t buy it.

If a $200 haircut is essential (no-one will ever convince me that it is) then how is $214 something to complain about?

My modus operandi is to spend less than I earn, save for a rainy day, andnever borrow for anything other than a home. This haircut sounds like a “rainy day” item.

The unspoken problem here is that the credit card(s) is already maxxed out, otherwise who would go for Zipmoney when a credit card surcharge is much less and the card can have up to 55 days before payment is due.

You are missing the point on whether it is 30$ or 200$. Zippay clearly state that merchants can not pass this charge on however unethical rouge behaviour should be called out. I have discovered 27 ppl who will never use their Melb network again due to their unethical sneaky behaviour and will never use zippay.

1 Like

Also good credit card management is paying within cycles. Take advantage of the 55 days interest free paymemt.

I myself would also not do it, but I do understand others who might. What suits you is great for you, what suits others is great for them. If they completely shun Credit Cards or even if they don’t then Zippay or their kind of service may indeed be a very valid choice, as is layby for some and loans are for others. We all have differing needs and that is what makes life such an interesting place to be.

This was not ZipMoney which even though it is run by the same company is not the service Zippay. ZipMoney is only interest free for a limited time period of 3 months though some extended periods can be offered as promotional ones and a $6 fee is charged every month there is a balance owing. It is also only for amounts over $1,000 I believe. On the other hand Zippay is interest free but does charge a $6 fee if there is a balance owing after each month and there are penalties if payments are missed. So for some the choice of 4 weeks to pay back with no interest or fees is a great choice.

What the complaint that started this thread was about is that a merchant in what seems to be a breach of Zippay’s condition ie that no Zippay merchant cost of service is to be passed onto the customer and those details were not disclosed until the payment was being processed and that the cost was passed on in what seems disregard of their Zippay Merchant contract is the problem.

Zip pay’s Repayment explanation from their site:

How do Zip Pay repayments work?

We’ve made repayments simple and flexible. Here’s how it all works:

We give you one account for all of your purchases, with only one repayment schedule to manage!

When is my first payment due?

Once you’ve made your first purchase, we’ll send you a statement at the start of the next month, outlining any purchases you made.

We set your default autopay amount to be $40 per month (or less if the amount you owe is less than $40). We’ll send you a statement outlining all purchases on the 1st of the next month.

How is the repayment made?

This will come from your linked debit card and run until your purchases are paid off.

You can change your repayment schedule at any time - choose from weekly, fortnightly or monthly payments. You can also set your own payment amount, as long as you cover the monthly minimum of $40 (or less if the amount you owe is under $40).

You can make additional payments at any time, and there are no early repayment penalties. Just be aware that additional payments won’t stop or replace your scheduled payments unless you manually change your payment schedule.

When is my payment due?

We’ll send you a statement at the start of each month. This will provide a summary of any purchases you made during the month prior and how much you owe in total. You’ll then have until the end of the month to pay off your balance in full to avoid paying any fees.

If you’d prefer to take extra time to pay off your balance, it’s no problem - you’ll just need to pay the monthly minimum of $40, and a $6 monthly account fee will be added to your balance for the following month.

For example: If you make two purchases in January, you’ll receive a statement on February 1st showing how much you owe for these two purchases. You’ll then have until February 28th to pay this amount without being charged the $6 monthly account fee."


The good outcome is that the ACCC will force zippay to contact all ppl that used zippay at the Merchant saloon in Balwyn nth and other sites to inform them they have breached t&c and refund the surcharge plus penalty.

1 Like