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It’s almost become an Australian sport to pay for expenses via credit card. Rewards Program Credit Cards are particularly popular, allowing you to earn points, rewards and other benefits when you use the card to make a purchase. On the downside, however, there is sometimes a surcharge imposed by the store at which you’re using the card.
This leads to the interesting question of to what extent does the surcharge applied erode the benefit of the reward points earned from the purchase? Whether your clients are using their credit cards to meet their expenses or whether you are using your own card for your expenses, the answer to this question is important, particularly given the popularity of this payment method.
From a bookkeeping standpoint, the GST treatment of the surcharge fee also needs to be dealt with.
