Card surcharge ban to cost councils $200m yearly
The Reserve Bank's card surcharge ban will cost Australian councils up to $200 million yearly.
From Thursday, Australian retailers must stop charging fees when customers use credit or debit cards. The RBA says the move will save consumers up to $1.6 billion in hidden charges.
Australian councils warn the costs are shifting to them. Central Coast Council faces up to $350,000 to $400,000 yearly in lost surcharge revenue, and if every council is hit the same way, the national toll reaches up to $200 million.
A Central Coast councillor said councils will have to choose: raise rates further or cut services. The government's Assistant Treasurer suggests the RBA will lower interchange fees that merchants pay to banks, potentially saving councils indirectly, but officials are sceptical the savings will cover the surcharge loss.
- $200 million yearly
- National council losses
- $350,000 to $400,000 yearly
- Central Coast impact
- $1.6 billion
- Consumer savings (claimed)
- 0.8 per cent to 0.3 per cent
- Planned interchange cap reduction
Why it mattersCouncils lose revenue from a key income source; losing $200m nationally could force service cuts or rate rises for ratepayers.
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