The Reserve Bank wants to end debit and credit card surcharges in Australia in a move it says would save consumers $1.2 billion each year — or around $60 for every adult using a card. Under the central bank's proposal, the EFTPOS, Visa and Mastercard networks would be allowed to ban surcharges. If card networks don't do what's proposed, the government could introduce new laws to ban surcharges. An RBA review found the current system was outdated and no longer achieving its aim of steering consumers towards more efficient payment methods as cash usage declined. Small business operators, including cafe and shop owners, have expressed concern about the ban, worried they would end up footing the bill and need to raise prices more broadly to cover payment costs. However, the RBA also wants to lower a cap on interchange fees paid by businesses, which would save them $1.2 billion a year and leave 90 per cent better off. The review said the measure would be expected to lower costs for businesses and therefore reduce the impact on margins, and the flow on to prices. The interchange fees are paid by a payment service provider — such as a major bank, Square or Tyro — to a customer's card issuer, like Commonwealth Bank, NAB, ANZ or Westpac, when a payment is made, and then passed on to businesses.
The treasurer Jim Chalmers described the review as "an important step" to reducing costs, while managing the impact for businesses and the economy."
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Read more here: https://www.abc.net.au/news/2025-07-15/rba-credit-debit-merchant-surcharge-payment-cost-review/105530340
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