Card surcharge ban lets businesses offer cash discounts
The RBA's surcharge ban, now in effect, may prompt small businesses to offer cash discounts instead of card charges.
The Reserve Bank has officially banned card surcharges, opening the door for small businesses to lure customers back to cash with discounts. About 20 per cent of Australians used cash specifically to avoid surcharge fees, so losing that penalty could push some toward digital payments.
Experts expect only modest change. Cash use rose slightly to 50 per cent in 2025, up from 47 per cent in 2022, but far below the 97 per cent recorded in 2007.
Convenience and speed drive most payment choices now, not price. A small discount at a café or barber is unlikely to reshape entrenched habits for most people.
- 20 per cent
- Cash users avoiding surcharges
- 50 per cent
- Cash use in 2025
- 97 per cent
- Cash use in 2007
Why it mattersSmall businesses facing thin margins now have one of their few levers to steer customers toward cheaper payment methods without charging card users extra.
AustraliaAustralian shop owners and traders can now offer cash discounts openly, potentially easing cost pressures while giving cash users a reason to keep using notes and coins.
✓ Claims checked against the source. checked 2 h ago
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