Banks cut merchant fees as card surcharge ban takes effect
Card surcharges are now banned in Australia, forcing merchants to absorb costs and prompting banks to compete on fees.
Card surcharges are now illegal in Australia as of Thursday. Commonwealth Bank says the transition has been smooth but businesses are anxious.
Merchants must now either absorb the cost themselves or raise product prices. Banks already remotely removed surcharge options from in-shop terminals used by businesses.
The interchange fee, paid from merchant banks to customer banks, dropped from 0.8 per cent to 0.3 per cent. CBA cut its merchant pricing to 0.99 per cent, while Westpac cut to 0.79 per cent.
A fees war among Australia's major banks has begun.
- 0.8 per cent to 0.3 per cent
- Interchange fee drop
- 0.99 per cent
- CBA new merchant rate
- 0.79 per cent
- Westpac new rate
- 80,000
- CBA merchant terminals
Why it mattersBusinesses, especially cafes and restaurants, face higher costs that will likely lead to price increases for everyday purchases.
AustraliaAustralian consumers will see no surcharges at the checkout, but may pay higher menu prices as businesses pass the cost on.
Corroborated byperthnow.com.au
Open this story in InSnip →
