Tasmanian cafe owner pushes cash after credit card surcharge ban
A Deloraine cafe is urging customers to pay cash after the federal ban on credit card surcharges took effect on October 1.
Carolyn Bussey at Mumma Buzz Cafe in Deloraine has posted signs asking customers to use cash. The push came after the Albanese government banned businesses from charging card payment surcharges.
The ban took effect on October 1. Before the ban, Bussey paid about $1,200 a month for card processing during COVID, and 85 per cent of her customers now pay by card.
Since she started encouraging cash, about 3 or 4 per cent have shifted back. But most businesses are expected to respond differently.
Launceston's Chamber of Commerce warns that most small businesses, already squeezed by rising costs, will simply raise prices to recoup card processing costs.
- $1,200
- Monthly card cost
- 85 per cent
- Customers paying by card
- 3 or 4 per cent
- Shift to cash so far
- Deloraine, Tasmania
- Location
Why it mattersSmall business owners cannot absorb the cost of processing cards, so they will either push cash, raise prices, or both, which means higher costs for customers facing cost-of-living pressure.
AustraliaThe surcharge ban, starting October 1, is forcing Australian small businesses to choose between absorbing costs, pushing customers toward cash, or raising prices on everyday items in cafes and shops.
✓ Claims checked against the source. checked 1 h ago
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