Card Payment Surcharges Banned in Australia from 2026

[Pushka]

No, it's just cynical behaviour since, as has been stated many times, the actual cost of card acceptance has reduced.

Businesses can and do increase prices but pegging them to government decision without acknowledging the whole is pathetic.

I do not understand how you can't see that while the cost of credit card facilities has decreased, the cost to the business now they can't pass that cost (even that reduced cost) on to the consumer, means that the net effect is an extra cost to the business.

 

[Kangol]

I do not understand how you can't see that while the cost of credit card facilities has decreased, the cost to the business now they can't pass that cost (even that reduced cost) on to the consumer, means that the net effect is an extra cost to the business.

If you look at the overall numbers, the % of people who are good and successful business owners is very low.
This means the % of people who are NOT good and successful business owners is very high.
For most people in a population, they will not understand this. Why that is the case is beside the point, the relevant part is they don't get it and likely never will.
This explains (not defending) why so many people have voiced their opinions in the way they have.
The quote "it's not your fault, but it is your problem" certainly holds true to some regard.

 

[Mr_Orange]

I do not understand how you can't see that while the cost of credit card facilities has decreased, the cost to the business now they can't pass that cost (even that reduced cost) on to the consumer, means that the net effect is an extra cost to the business.

I can, easily, but it should have already been baked into the business model. The cost of card acceptance has always been there and now it's less.

Prior to the last RBA ruling (I forget the year) which capped surcharging at the actual cost, surcharging was extremely rare which means that all those businesses had accounted for the cost in their pricing. They then introduced a surcharge, thereby double dipping. Now, their cost has reduced from what was already accounted for, they can't surcharge, but they are crying like spoilt brats about not being able to surcharge and then increasing prices by many times the cost of the surcharge that has been removed.

So many of the discussion points in this thread are failing to recognise the above history of surcharging.

 

[HMcM]

We can't wind back employee law. Improve yes. Make less beneficial? Never.

I mean of course we can, it's just unpopular with certain groups. The majority of Australians would be better off without weekend penalty rates.

What's an improvement and what is less beneficial is quite subjective. It can also be traded for some other advantage.

 

[306]

I can, easily, but it should have already been baked into the business model. The cost of card acceptance has always been there and now it's less.

Prior to the last RBA ruling (I forget the year) which capped surcharging at the actual cost, surcharging was extremely rare which means that all those businesses had accounted for the cost in their pricing. They then introduced a surcharge, thereby double dipping. Now, their cost has reduced from what was already accounted for, they can't surcharge, but they are crying like spoilt brats about not being able to surcharge and then increasing prices by many times the cost of the surcharge that has been removed.

So many of the discussion points in this thread are failing to recognise the above history of surcharging.

I think it has been baked in the business models, just not passed on to the customer, now it has been passed on in 1 batch. They've just been wearing the costs.

Businesses do not change every individual price when they get any/every input cost variation.

 

[AuSammy]

I mean of course we can, it's just unpopular with certain groups. The majority of Australians would be better off without weekend penalty rates.

What's an improvement and what is less beneficial is quite subjective. It can also be traded for some other advantage.

There is the circumstance of a business I knew that would not have opened on Sundays except there were staff desperate for a job or extra hours and excepted payment that made opening the business viable (and no weekend surcharge on meals). Not an isolated incidence I’m sure.

 

[Pushka]

Pleased our line of business is with other business who pay by funds transfer. The ones who want to pay by credit card are rare so we send them to b2bpay. And they pay the quite significant fees given the amount of the invoice involved. Maybe four a year. Don’t know what will happen with those but we aren’t currently working with them so moot.

Feel sorry for small business who are now wearing it and nothing here convinces me that they are any better off. They aren’t.

 

[Mr_Orange]

I think it has been baked in the business models, just not passed on to the customer

If the cost of acceptance has been baked into the business model, it is already being passed on to the customer because pricing is derived from costs + profit.

This isn't hard, people!

 

[burmans]

The timing - overnight - suggests many are.

As I’m sure is the intent but that doesn’t make it true!