Card surcharge ban opens path to cash discounts from October 1
The RBA's ban on card surcharges from October 1 allows businesses to offer discounts for cash instead.
The Reserve Bank is banning card surcharges starting only from October 1, meant to save households $1.6 billion a year. Businesses can now offer discounts for paying in cash.
Under the new rules, the full price must be displayed on the sticker. Businesses can then discount that price for cash payments.
This creates a strange mirror of the old system, a cash discount instead of a card surcharge. Some retailers may go cash-only to avoid card processing fees altogether.
Consumers using cards will no longer see separate charges, but may pay the full sticker price.
- October 1
- Implementation date
- $1.6 billion a year
- Claimed household savings
- Reserve Bank of Australia
- Authority
Why it mattersShoppers could save money by paying cash, and the competition between payment types might become visible in prices.
AustraliaAustralians choosing to pay cash may find discounts at the checkout, while card users may pay full sticker price if businesses offer cash incentives.
✓ Claims checked against the source. checked 6 d ago
