AGL has decided to introduce a payment processing fee to cover the extra costs incurred when a customer chooses to pay their Energy Bill using a credit card or other card using a credit card payment facility.

What is a payment processing fee?

It is a fee charged to customers who choose to pay their AGL Energy Bill using a credit card or other card using a credit card payment facility.

Why has the fee been introduced?

AGL is charged a merchant service fee by financial institutions when customers pay their Energy Bill using a credit card or other card using a credit card payment facility. The merchant service fee is charged to AGL as a fixed percentage of the payment amount. AGL also incurs costs in administering the payment of this fee and accepting payments using the various credit card payment options (including payment over the phone and EZI-PAY using the credit card option).

What is a credit card payment facility?

It is a system that allows customers to make a payment using the VISA and MasterCard network. The network is used by traditional credit cards, and debit style cards, such as the VISA Debit card.

If the number on the front of your card comprises of 16 digits, the payment you are making is being processed through a credit card payment facility.

How much is the fee?

The fee is 1% (GST inclusive) and is charged on the total amount of the Energy Bill that you pay using a credit card or other card using a credit card payment facility.

This 1% fee is based on the merchant service fee charged by financial institutions to AGL, plus the administration cost incurred by AGL to provide this payment option to customers.

How will I know if I have incurred the fee?

Our billing system recognises what payment method a customer chooses to use.

The payment processing fee will be captured in the AGL billing system when you make an Energy Bill payment using a credit card or other card using a credit card payment facility.

The fee is specifically itemised and will appear on your following bill as a separate line item "Payment processing fee" for gas and electricity bills.

How will I know if the fee I have been charged is correct?

You can calculate the amount you will be charged by applying the 1% to the total amount that is to be paid by a credit card or other card using a credit card payment facility. The amount is based on the GST inclusive total of you bill. The following example will give you an indication of the payment processing fee that will be applied.

The total amount of your bill is $100
1% of $100 = $1
A $1 (GST inclusive) payment processing fee will apply

When will I be charged this fee?

You will be charged on your next bill.

Who will be affected by the fee?

Only those customers that choose to use the credit card payment service offered by AGL may be subject to the Merchant Service fee (MSF) of 1%.

In summary, AGL may charge a payment processing fee of 1% in the following States:

• Vic: Customers who have accepted or signed a Contract for both electricity and gas, active from 15/3/06
• NSW: Customers who have accepted or signed a Contract for both electricity and gas, active from 15/3/06
• SA: All South Australian customers (except for Large Market customers)
• Qld: Customers who have accepted or signed a Gas Standard Retail Contract and customers who have accepted or signed a Contract for both electricity and gas.

Are there any customers who won't be charged the fee in South Australia?

Yes. Large Market business customers will not be charged. AGL has negotiated special contracts with these customers and individual payment arrangements have been agreed with these customers.

How will current customers and new customers be notified of the payment processing fee?
All existing customers will see a message notifying them of the new fee on each of their Energy Bills.

Customers who are paying their bill using their credit card or other cards using the credit card payment facility (including customers using the EZI-PAY direct bill payment or EZI-PAY bill smoothing facilities) will be advised prior to the transaction that a payment processing fee will apply. All customers that have paid using the credit card payment option in the past will have the option of changing the way they pay their bills to an alternative method so that they do not incur any fee.

New AGL customers will also be notified as a part of the Energy Contract they sign with AGL.

Can I avoid paying a MSF fee?

Yes. Payment via credit card is your choice. You can avoid the fee by selecting to pay your Energy Bill by another payment option. Payment options that do not incur a fee, include:

• EZI PAY direct debit: automated payment from your bank account, credit union or building society
• BPAY®: manual payment made from your nominated savings or cheque account
• Pay by mail: send your payment slip to AGL together with a cheque or money order
• Australia Post: cash or cheque payments in person at your nearest Australia Post outlet

Does this fee apply to both gas and electricity bills?

Yes.

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