The Consumer Council has backed the policy of no surcharge on goods and services bought on credit cards.

CEO Premila Kumar says the extra surcharge is unfair and is becoming a profit making scheme for retailers.

She says the “hidden cost” is not disclosed and credit card users have not signed up to such charges.

The Reserve Bank is investigating whether a surcharge should be in place.

Many retailers are charging a service fee if you like which goes against an agreement called the ‘no surcharge rule’.