Small business owners warn card surcharge ban will force price rises
Small business owners warn the card surcharge ban will force them to raise prices.
Australian cafes and small shops can no longer charge customers a surcharge to cover card payment fees, a rule that came into force on October 1. Banks still charge businesses hundreds of dollars weekly, but they cannot pass the cost to customers.
Business owners say they will now raise menu prices to recover lost revenue. Cafe owner Reuben Brand in Wodonga said many shops and cafes face closure in the next two years.
Another Albury cafe owner reports paying about $600 a week in card and bank fees. They argue the Albanese government is crushing small business hit by rising electricity, bank fees and stock costs.
For a cafe, the margin on a coffee is only 20 to 30 cents. The government has also announced the ATO will stop accepting credit card tax payments from November 30, adding another blow to businesses already absorbing card fees themselves.
- October 1
- Surcharge ban effective date
- $600
- Thick as Thieves Cafe weekly fees
- 20 to 30 cents
- Coffee profit margin
- November 30
- ATO credit card cutoff
Why it mattersSmall business closures mean fewer local jobs and services in regional towns. Customers will pay higher prices for coffee and meals as cafes recover lost surcharge revenue.
AustraliaAustralians in regional areas like Albury-Wodonga face cafe and shop closures and rising prices at the venues that survive. The surcharge ban affects every business accepting card payments.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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