Card payment surcharges should be banned for debit and credit payments, RBA says
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Australia Proposes Scrapping Card Payment Surcharges
Above: An illustration photo, taken in Krakow, Poland on March 29, 2024, showing MasterCard and Visa cards. Image copyright: Jakub Porzycki/Contributor/NurPhoto/Getty Images
The Spin
Narrative A
The reform introduced by Albanese's Labor administration finally addresses an outdated system that penalizes consumers for using the most convenient payment method. With cash usage plummeting to just 13% of transactions, surcharges have become unavoidable fees instead of useful price signals. This proposal delivers real savings of AU$60 per adult annually while forcing greater transparency in a murky payments system.
Narrative B
Eliminating surcharges will simply hide costs rather than reduce them, forcing businesses to embed payment fees into product prices for all customers. Small businesses already struggling with high interchange fees will face additional compliance costs and menu repricing, ultimately passing these expenses to consumers through higher base prices.