Card payment sucharges banned in Australia from 2026

[Saab34]

I find it amusing that people think that with the RBA banning these surcharges, that they will pay less than they do currently for those goods or services.

The price will just change to incorporate what the business was used to taking in - maybe even a little higher, after rounding - and other than deciding to buy elsewhere (who would also have increased their prices), there is nothing you can do about it. It’s just a waste of time, and taxes… again.

At least you’ll be able to marry up the cost on the sticker with the cost on your statement though

That’s is. Especially with airlines, back in the day when they had to walk away from the ‘per passenger per sector’ rort, fares went up the next day, and they have been ever since.

 

[transpactraveller]

Could a business keep surcharging by instead offering a cash discount instead of a card surcharge?

For example, Today you might buy a $5 coffee, tap your card and get charged $5.10.

After October, they'll update the price to $5.10, you tap your card and still pay $5.10.

But could they put up a sign that, for example, says "Coffee - $5.10 - or $5 cash only price"

Taking us back to exactly where we were before the ban, just advertised in the opposite way.

Would that be legal?

 

[CaptJCool]

Convenience ….
I doubt anyone walked out over a surcharge and took ‘all’ their business elsewhere

Just as despite fuel getting a price shock adding $40-50 to a tank of petrol, it didn’t won’t stop buying behaviour

With all these things, was good while it lasted.

The trouble with one-sided loyalty expected of a repeat customer is that with the constant changing by the business of the “loyalty” offer, that aside the diehards, everyone else “jumps ship”

What’s free lounge access worth ?
A bottle of champagne?
$55 given the offers to buy access
Or the extra cost of the actual ticket

 

[justinbrett]

I find it amusing that people think that with the RBA banning these surcharges, that they will pay less than they do currently for those goods or services.

The price will just change to incorporate what the business was used to taking in - maybe even a little higher, after rounding - and other than deciding to buy elsewhere (who would also have increased their prices), there is nothing you can do about it. It’s just a waste of time, and taxes… again.

At least you’ll be able to marry up the cost on the sticker with the cost on your statement though

Well, currently it's illegal to have a surcharge that is more than the cost of accepting the card.

The thinking is (I believe), RBA caps interchange fees, which makes it cheaper to accept the cards, so retailers don't need to put a surcharge on.

That said, most of of the surcharges that exist today are more than the current interchange cap, so there will be a cut to the business as well.

 

[AuSammy]

Well, currently it's illegal to have a surcharge that is more than the cost of accepting the card.

Illegal but it doesn't stop many businesses doing it. Particularly smaller/medium ones that think they will get away with it.

 

[SimonR32]

Food for thought, currently the ATO surcharge credit card payments., I assume this will be going?

Then with AMEX and business surcharges not involved, could be a potential to pay ATO bills and receive points at no cost?

 

[Aeryn]

Although many cards provide 0 point for government payments and others only 50% of the usual earn rate.

 

[Happy Dude]

Although many cards provide 0 point for government payments and others only 50% of the usual earn rate.

Sniip, Yakpay etc will still be an option I guess. Be interesting see what happens with cards that pay points for rent. Maybe lots of things will be added to the no points list.

 

[Berlin]

Illegal but it doesn't stop many businesses doing it. Particularly smaller/medium ones that think they will get away with it.

Not only those- hotels are my biggest bug bear! I often have fees in excess of $100 on my hotel invoices, just because they can (almost exclusively Hyatt or other big Global chains). Here in AU and NZ only that is- nowhere else in the world so given my particular spending habits, this alone will make it a good change for me.

 

[transpactraveller]

The hotel ones have always confused me, these big global hotel chains that don't surcharge anywhere else in the world, but in Australia/NZ they are adding often 2-3% to your bill (without being upfront about it, and without offering any alternative surcharge-free way of paying).

A few times I thought they must have charged me for things from the mini-bar that I didn't take, checked the invoice, and see it's a $50 card surcharge. Makes by blood boil. So glad it's going.

 

[nick.wall]

Yet a quick google shows it was seemingly the RBA who allowed surcharging back in 2003, then had to reign it in in 2016 and now going back to what they had originally. Have they admitted they got it wrong, or, just hoping we all forget while they take kudos for solving a problem they created. Getting difficult to take them seriously ...

 

[Rich]

Yet a quick google shows it was seemingly the RBA who allowed surcharging back in 2003, then had to reign it in in 2016 and now going back to what they had originally. Have they admitted they got it wrong, or, just hoping we all forget while they take kudos for solving a problem they created. Getting difficult to take them seriously ...

Different circumstances. In 2003 a lot of people still paid cash. The fee seemed reasonable then.

 

[oz_mark]

Yet a quick google shows it was seemingly the RBA who allowed surcharging back in 2003, then had to reign it in in 2016 and now going back to what they had originally. Have they admitted they got it wrong, or, just hoping we all forget while they take kudos for solving a problem they created. Getting difficult to take them seriously ...

I would frame it the way the RBA did - it is no longer fit for what they wanted to achieve. Given that at the time cash was still king, and merchant fees were higher, it was suitable for them. Not for now

 

[dajop]

Not only those- hotels are my biggest bug bear! I often have fees in excess of $100 on my hotel invoices, just because they can (almost exclusively Hyatt or other big Global chains). Here in AU and NZ only that is- nowhere else in the world so given my particular spending habits, this alone will make it a good change for me.

Hotels are particularly egregious given that their business model is built around credit/debit cards to guarantee reservations and handle incidentals. And same for car rental companies. They're not like small family run restaurants/cafes.

And hotel rates are set according to supply and demand, so who really notices or cares if the advertised price is $250 or $255?

 

[TheRealTMA]

Different circumstances. In 2003 a lot of people still paid cash. The fee seemed reasonable then.

No, disagree. The proposed that it would reduce the fees and cost to those card holders who didn’t pay off their monthly debt. Did nothing to address that just allowed retailers to add excessive charge for doing normal business, IMHO.

 

[dairyfloss]

In the interviews I’ve seen with various outlets today, after the news came out, basically every retailer and small business association spokesperson have confirmed they will just need to or expect to see prices increased to offset this, when the time comes That revenue expectation is baked in now, however small.

Basically, we’ve all paid some consultants and the RBA to devalue rewards credit cards for us. Huzzah!

 

[muppet]

Yet a quick google shows it was seemingly the RBA who allowed surcharging back in 2003, then had to reign it in in 2016 and now going back to what they had originally. Have they admitted they got it wrong, or, just hoping we all forget while they take kudos for solving a problem they created. Getting difficult to take them seriously ...

No. Back then, the credit companies charged high merchant fees and used contracts to prevent merchants from passing those costs on to consumers. That was objectively anticompetitive (even if beneficial for premium rewards credit cardholders).

Now the RBA is not only banning the surcharging, but massively reducing the interchange fees. So businesses, while they cannot surcharge, also will see substantial fee reductions.

In the interviews I’ve seen with various outlets today, after the news came out, basically every retailer and small business association spokesperson have confirmed they will just need to or expect to see prices increased to offset this, when the time comes That revenue expectation is baked in now, however small.

Basically, we’ve all paid some consultants and the RBA to devalue rewards credit cards for us. Huzzah!

Which is fine in my view, few businesses have price-setting powers as monopolies. They will compete and that price will be all inclusive of the costs of the transaction.

 

[muppet]

Not only those- hotels are my biggest bug bear! I often have fees in excess of $100 on my hotel invoices, just because they can (almost exclusively Hyatt or other big Global chains). Here in AU and NZ only that is- nowhere else in the world so given my particular spending habits, this alone will make it a good change for me.

Completely agree. Although Aus and NZ don’t have the highway robbery that is “resort fees”!

 

[transpactraveller]

In the interviews I’ve seen with various outlets today, after the news came out, basically every retailer and small business association spokesperson have confirmed they will just need to or expect to see prices increased to offset this, when the time comes That revenue expectation is baked in now, however small.

They're all saying how they'll need to increase prices to cover the surcharge, but all they're really doing is including the surcharge amount in the advertised price. So the price will be the same unless you were previously paying cash.

So they'll increase the price of the $5 coffee to $5.10, and everyone will complain the price went up 10c without realising they were always paying $5.10 for it and got fooled by the $5 + 2% surcharge price tag.

 

[flyguy77]

So they'll increase the price of the $5 coffee to $5.10, and everyone will complain the price went up 10c without realising they were always paying $5.10 for it and got fooled by the $5 + 2% surcharge price tag.

Or they'll all put the price to $5.20 and make even more...