Card surcharge ban pushes cafes to raise coffee prices
One in 10 Australian cafes raised coffee prices by up to 35 cents after the Reserve Bank's October 1 surcharge ban.
Australia's Reserve Bank banned card surcharges on October 1, forcing businesses to absorb the cost or pass it on to customers. One in 10 cafes raised their prices by up to 35 cents in response.
The move was meant to help consumers but has delivered mixed results. At the pump and supermarket counter, major retailers are legally required to accept cash for transactions under $500.
Small businesses like nail salons and pizza shops have offered modest cash discounts to offset lost surcharge income. But for most customers, the savings are small.
A cash experiment found buying a coffee saved just seven cents, and a pizza dinner cost only $2 less with a five per cent cash discount.
- 1 in 10
- Cafes raising prices
- up to 35 cents
- Maximum coffee price rise
- seven cents
- Cash savings on coffee
- October 1
- Ban effective date
Why it mattersThe surcharge ban sparked price rises at some cafes, though early data shows cash discounts remain limited and savings are modest for most customers.
AustraliaAustralian shoppers are now paying more at cafes and some small businesses, though major retailers must still accept cash. The policy's impact depends on whether customers switch to cash or pay higher prices.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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