Card surcharge ban starts today, but businesses say costs won't drop
The RBA's ban on card surcharges takes effect today, but Warrnambool business owners warn customers won't see savings.
From today, Australian retailers can no longer charge extra fees when customers pay with credit or debit cards. The Reserve Bank of Australia said the move would save shoppers about $60 a year.
Warrnambool business owners are sceptical about the savings. Restaurateur Jonathan Dodwell said the ban would cost his businesses about $400 to $500 extra each week because payment providers are raising their fees to retailers instead.
Cafe owner Turgut Toprak said his payment platform Square raised charges from 1.6 per cent to 1.9 per cent. Both owners predict restaurants and shops will raise menu prices and product costs to stay afloat.
The regulator also capped the fees banks can charge merchants per transaction, a change that has businesses worried about further fee hikes elsewhere.
- $60 per person annually
- RBA promised savings
- $400 to $500 per week
- Dodwell extra costs
- 1.6 per cent to 1.9 per cent
- Square fee increase
- October 1, 2026
- Ban effective date
Why it mattersIf retailers pass costs to customers through higher prices, the RBA's promised $60 saving per person could be wiped out.
AustraliaEvery Australian shopper and small business will feel this from today; how much depends on whether retailers absorb the cost or push it into prices.
✓ Claims checked against the source. checked 1 h ago
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