Card Payment Surcharges Banned in Australia from 2026

[MELso]

For small items I wonder how much an incentive a 5% discount will be.

If you’re paying $100, you get a nice $5 note in change.

I’ve your paying $7 for a coffee you’re going to end up with 20c+10c+5c piece … Lot of people probably couldn’t be bothered unless they are disciplined to manage their loose change.

I'd pay a little extra to NOT have to carry around shrapnel!

 

[dajop]

I'd pay a little extra to NOT have to carry around shrapnel!

For us occasionally pop change into donation jars but also we have a pill bottle that we keep the shrapnel in and every now and then we pour into the self checkout to pay for groceries. But rather avoid it in the first place.

 

[levelnine]

Seeing more and more of these images being posted everywhere.

As I predicted earlier in this thread, consistent with economic theory, businesses are using this systemwide 'shock' to reset their margins.

It is way easier to justify a price increase when everyone else is also increasing their prices, and the end of surcharging gave everyone a perfect excuse to increase their prices.

 

[Ade]

Taken to the other extreme, they could well say "Hey I'm only charging your 50c for making the coffee, but the total cost will be $5.50 due to all the fees involved".

For the business that I was mentioning about upthread, this narration will fit aptly ... I might tell them

 

[piec]

That's a sorry excuse. It's all part of running a business, should the same apply to supplies, staff, leasing, utilities, registrations, insurances, costs as well?

Taken to the other extreme, they could well say "Hey I'm only charging your 50c for making the coffee, but the total cost will be $5.50 due to all the fees involved".

Price of coffee: $5.40
Cup and lid surcharge: $0.10

 

[kpc]

Seeing more and more of these images being posted everywhere.

As I predicted earlier in this thread, consistent with economic theory, businesses are using this systemwide 'shock' to reset their margins.

It is way easier to justify a price increase when everyone else is also increasing their prices, and the end of surcharging gave everyone a perfect excuse to increase their prices.

View attachment 523702

Shop around! I went to my local coffee place yesterday....same price (for now), no card surcharge and their loyalty program continues. Helps that there are 4 coffee shops within 50 metres of each other!

 

[SeatBackForward]

Price of coffee: $5.40
Cup and lid surcharge: $0.10

But that highlights the idiocy of it all, Component pricing like that infers that a choice is available. Yes please serve me a coffee without a cup. Process the ticket without any administration etc.

 

[Ade]

I'll be interested to see if their prices rise in coming months or another fee of sorts is added.

I have a feeling that this will definitely happen - at least up to the point where business aren't losing money when accepting payments via CC/Online means ... And there won't be a tell if the business are exploiting this to increase the costs ... either way, I think customers will be spending more of their money ... happy to be wrong ...

 

[SeaWolf]

Price of coffee: $5.40
Cup and lid surcharge: $0.10

Some places are already doing that, to encourage people to be environmentally friendly and bring a keep cup. Though usually they do it the other way around and offer a discount if you don't need the disposable cup.

 

[DC3]

For small items I wonder how much an incentive a 5% discount will be.

If you’re paying $100, you get a nice $5 note in change.

I’ve your paying $7 for a coffee you’re going to end up with 20c+10c+5c piece … Lot of people probably couldn’t be bothered unless they are disciplined to manage their loose change.

Yes. The idea with loose coins is never to have them of course. Throw/give them away. Too much of an embuggerance to cart that useless stuff around. Tap-and-go for me.

 

[DC3]

In the case of coffee shops, I’m not too interested in how they come up with a price per cup. I want good coffee. Competition should reasonably keep the price in check.

 

[AuSammy]

Since buying the new EV I often only leave the house with my phone and house key.

The phone wallet opens the car and pays for anything while I’m out, shopping, parking, entrance fees etc. I only have cash on me for my 6wkly haircut ($15) as that is the only accepted payment method.

Started considering replacing front door lock with a smart lock so I don’t need to carry house key.

 

[piec]

Surcharge Tracker: Flat White Prices After Card Surcharges End | Small Flat White

Card surcharges end on 1 October 2026, so cafes can no longer charge extra for paying by card. We're re-pricing the same Australian cafes before and after to show how flat white prices change.

smallflatwhite.com

Price went up at 20% of the cafes, median price increase is $0.50.

Also:

For comparison: between April and September 2026, over about five months, 29% of 829 cafes we priced twice put their flat white price up, 60% kept it the same and 11% brought it down. That is a longer stretch than September to October, so it is context, not a like-for-like benchmark.

 

[HMcM]

Yep, this is looking to already be the disaster that the minority of us saw coming. But interesting to see the poll figures dropping from the original 60% support the more we find out about it.

 

[Mr_Orange]

Whilst I was happy with the proposed change, I am not at all surprised by the response of businesses in "rip-off Australia". No business seems to be recognising that their actual cost of acceptance has decreased, they are just whining about not being able surcharge. Quite frankly, it's pathetic. It's amazing that any Australian business has lasted more than a few months the way they cry about their costs!

 

[MelbFlyer]

Since buying the new EV I often only leave the house with my phone and house key.

The phone wallet opens the car and pays for anything while I’m out, shopping, parking, entrance fees etc. I only have cash on me for my 6wkly haircut ($15) as that is the only accepted payment method.

Started considering replacing front door lock with a smart lock so I don’t need to carry house key.

I've got an EV as well, my garage door is connected and controllable via an app (I still have the remote in my car at all times though) and the internal door to the inside of my house in the garage has a smart lock w/ fingerprint and/or code via Wi-Fi- even despite the connected technology and redundancy, I still carry my wallet with me.

Doesn't happen often but what if you misplace your phone which unlocks your car, pays for things etc. Having a wallet with a keycard for your car would come in handy then.

I think technology has made some of the population complacent, sometimes the "old school" stuff still works and has its place - and no, I'm not a Gen X / boomer, I'm definitely a Gen Y.

In the same breath, cash will still have relevance.