Credit card surcharge ban kicks in October 1 across Australia
From October 1, Australian businesses can no longer add surcharges for card payments, but many plan to raise all prices instead.
A nationwide ban on card surcharges takes effect October 1, ending the practice of charging extra when customers pay by card instead of cash. The change also caps the fees banks can charge businesses for card transactions.
Bakery owner Dylan McQueen paid $5,785 in card fees last year despite displaying "cash preferred" signs, with card payments making up most of his transactions anyway. Nursery owner Calum Haygarth says merchant fees cost him tens of thousands annually, forcing him to charge an extra 2.9 per cent on small items.
Many businesses say they will raise prices across the board to cover the cost they can no longer pass directly to card-paying customers. The RBA estimates the ban will save businesses $910 million annually.
Banks are already scrambling to lower their merchant fees ahead of the deadline.
- October 1
- Ban effective date
- $5,785
- Dylan McQueen's card fees last year
- 2.9 percent
- Calum Haygarth's surcharge on small
- $910 million
- Estimated annual business savings
Why it mattersShoppers will no longer see different prices for cash versus card, but overall prices may rise as businesses absorb costs they previously charged separately.
AustraliaAustralian consumers get simpler pricing but small businesses face pressure to lift prices on everything to maintain margins.
✓ Claims checked against the source. checked 2 h ago
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