Card Payment Surcharges Banned in Australia from 2026

[esseeeayeenn]

I just realised this is very similar to the unintended consequences of the RBA decision to ban the interchange fee on ATM transactions in March 2009.

It was supposed to lower fees for consumers.
In fact, it has led to a massive decline in the number of bank-owned ATMS.
They are being replaced by ATMs owned by third parties.
Who charge a fee per transaction which is higher than the old interchange fee.

This confirms my complete lack of confidence in economists to understand the real world.
Worse, they don't want to understand the real world.
The rhetoric coming from the RBA is basically saying businesses aren't reacting in the way they should.
This is a real world example of the concept of "irrational actors" which economists use as an excuse when their models don't predict real world events.

 

[oz_mark]

I just realised this is very similar to the unintended consequences of the RBA decision to ban the interchange fee on ATM transactions in March 2009.

It was supposed to lower fees for consumers.
In fact, it has led to a massive decline in the number of bank-owned ATMS.
They are being replaced by ATMs owned by third parties.
Who charge a fee per transaction which is higher than the old interchange fee.

I would suggest the decline in ATMs started occuring after NAB (and other banks) stopped charging the $2 for using other bank ATMs in 2017. While it was intertwined with a move to using less cash, being able to use any ATM meant they didn't have to install so many ATMs for their own customers.

 

[esseeeayeenn]

I would suggest the decline in ATMs started occuring after NAB (and other banks) stopped charging the $2 for using other bank ATMs in 2017. While it was intertwined with a move to using less cash, being able to use any ATM meant they didn't have to install so many ATMs for their own customers.

Ummm the fee you are referring to is the interchange fee I was referring to.