Customer Centre

Payment Processing Fee FAQs

1. What is the credit card Payment Processing Fee?
2. Why have you introduced this fee?
3. When will the fee be introduced?
4. Will this apply to all of my billing accounts and are there any exceptions?
5. How much is the fee?
6. What are the different fees?
7. Why do my business' merchant fees vary from the ones Sensis is charging?
8. Why do Sensis charge different fees from the ones Telstra charges?
9. Will these fees change?
10. What other payment methods are available so that I don't have to pay this fee?
11. How will it be applied?
12. Does Sensis charge a payment processing fee for any other payment options?
13. Will I have to pay GST?
14. Is the GST on the fee tax deductible?
15. How are you calculating the GST?
16. How do I work out you are charging me the right amount?
17. Who can I speak to about this if I am confused and have extra questions?

1. What is the credit card Payment Processing Fee?
Generally companies in Australia are obliged to pay financial institutions and card providers a fee for processing credit card payments. The Reserve Bank of Australia announced credit card reforms, on 1 January 2003, lifting the restrictions which prevented companies from passing on such fees to their customers.

Sensis will be passing on the payment processing fee to most customers who choose to pay by credit card. 


 
2. Why have you introduced this fee?
Credit card payment processing fees are a cost charged by financial institutions and card providers for the processing of customers’ credit card payments. As these payment methods attract considerably higher costs than other payment methods within Australia, Sensis is introducing a credit card payment processing fee to partially recover these costs.

You may still choose to pay with a credit card if you want, however as of 1 April 2006, these payments will generally attract a fee. A variety of other payment methods are available if you do not wish to incur the fee, including paying by direct debit, paying by cheque, BPay, or at Australia Post outlets.

 

3. When will the fee be introduced?
Sensis is introducing a payment processing fee on most credit card payment transactions from 1 April 2006. 


 
4. Will this apply to all of my billing accounts and are there any exceptions?
This change will apply to most credit card payments made to Sensis. Charges for some products are exempt from the payment processing fee. These products include Self Service BidSmart charges and individual White Pages® on CD and WhereIs® Navigation CD purchases.

Other exemptions may apply, including Payment Processing Fee charges below $10 GST inclusive. 


 
5. How much is the fee?
Depending on the credit card used, the fee will vary between 0.64% and 1.8% of the payment amount, including applicable GST. The fee Sensis charges customers will only partially cover Sensis’ overall costs of providing a credit card payment option. 
 

6. What are the different fees?
The two fees are 0.64% for Visa, Bankcard, American Express and MasterCard, and 1.8% for Diners. This is inclusive of GST. The difference in fees is due to the different rates Sensis is charged by each card provider.

 
7. Why do my business' merchant fees vary from the ones Sensis is charging?
Each business may be charged different rates from by their financial institution (such as Visa and MasterCard) or card provider (such as AMEX and Diners). Please refer to your financial institution or card provider for further information.

 
8. Why do Sensis charge different fees from the ones Telstra charges?
While Sensis is a subsidiary of Telstra, Sensis and Telstra are separate legal entities and have separate relationships with financial institutions and card providers. Merchant Fees charged by the Financial Institutions and card providers may therefore vary between Sensis and Telstra.

 
9. Will these fees change?
These fees may change depending on market business conditions. The payment processing fees charged by financial institutions may change, and as such the payment processing fee may change.

 
10. What other payment methods are available so that I don't have to pay this fee?
You can avoid this fee by choosing from a variety of convenient payment methods such as BPay, direct debit to bank account, paying by cheque or paying at Australia Post outlets. More information on the various payment options is available on the back of your Sensis bill.

 

11. How will it be applied?
From 1 April 2006, most customers paying by credit card will have the payment processing fee applied to their next bill, with some limited exceptions. (See question 4 above).

 
12. Does Sensis charge a payment processing fee for any other payment options?
No.

 
13. Will I have to pay GST?
If there are any GST liable products, services, fees or charges on the bill(s), you will need to pay GST on the payment processing fee. We recommend for specific tax advice you should consult your tax consultant.

 
14. Is the GST on the fee tax deductible?
In some cases the GST portion on the payment processing fee may be tax deductible; however we recommend you seek advice from your tax consultant.

15. How are you calculating the GST?
GST of 10% will be levied on the portion of the payment processing fee referable to GST liable products, services, fees or charges on the bill(s) paid.

The Tax Office has confirmed that Sensis needs to apply a reasonable method of apportionment to calculate GST on the payment processing fee and Sensis’ methodology for calculating the GST was designed based on this advice.

 
16. How do I work out you are charging me the right amount?
The payment processing fee you will incur is captured by Sensis’ billing systems when you make your bill payment by credit card. This data will appear on your next bill in the "Miscellaneous Charges" section and will specify the card type used and applicable rate. It will also show the GST exclusive and inclusive amounts.

You can then work out that you have been charged the right amount because it will be 0.64% of the amount you have paid if you are paying by Visa, American Express or MasterCard and you are not a GST-exempt customer. For example if your bill is $100 and you are paying by Visa, American Express or MasterCard, then 0.64% of this amount is $0.64 cents. The 0.64% is GST inclusive.

Similarly, if you are paying by Diners, the fee amount is 1.8%, GST inclusive.

 
17. Who can I speak to about this if I am confused and have extra questions?
Please call 132378, or the number that appears on the top right hand corner of the front page of your bill.