Consumer win in card surcharge cut as business bristles
The abolition of additional wages in debt and credit card transactions can save more than $ 1 billion, but small businesses say that changes will hide the costs of increasing prices.
. Reserve Bank of Australia’s review The seller card payment costs suggest that consumers should be scrapped in EFTPOS, MasterCard and Visa Card transactions, as they do not help consumers make more efficient payment options.
It is estimated that consumers pay an additional $ 1.2 billion in payments each year, which is equivalent to $ 60 per adult using a card.
Reducing the limit on the exchange fees paid by enterprises – another suggestion – will save $ 1.2 billion to Australians.
The fee is paid to a customer’s card publisher by a enterprise when a transaction takes place.
However, the Australian Restaurant and Cafe Association slapped the proposal and suggested that the “ton deaf” policy would increase menu prices.
“RBA, who thinks of the cost of this ridiculous decision?” Chairman of the Executive Board Wes Lambert.
“A blanket ban for the situation will weaken small businesses, reduce price transparency, and require price increases in every menu in Australia.”
The Australian Small Business Administration Council said that businesses will only increase their prices and will hide the changes instead of being removed.
Independent Payment Forum, an organization representing small businesses, including retailers, cafes, service stations and markets, said other commercial fees will still enter profit margins.
“The proposed regulatory options fail in small enterprises and local communities they serve, B Bradford Kelly said.
“Great work, large banks and large open sea companies benefit.”
RBA’s proposals go further than the previous federal government proposals and will be pushed by the Central Bank waiting for the outcome of a short feedback window.
Treasurer Jim Chalmers said the government was ready to charge the bank card transactions from the beginning of 2026.
However, RBA included credit cards.
The government will take into account the advice, but on Tuesday, Dr Chalmers is expected to make changes to RBA under its current powers.
The Central Bank suggested that the prohibitions regarding the “no additional fee” rules be removed to scrape the wages.
Card networks are expected to follow the “no additional fee” rules based on historical experiences and arrangements in other judicial regions.
If this does not happen, the RBA advises government laws to prohibit additional wages.
Canstar Data Analysis Director Sally Tindall said that consumers are tired of being subject to extra fees in the safe.
“Our research shows that the majority of Australians want to be better than their backs of these annoying insects,” he said.
Banks and other payment systems supported changes as they keep up with the reality of modern transaction.
“It makes sense that consumers know before paying the final price,” an Australian Banking Association spokesman said.
“Banks will work with the government to provide more accuracy and transparency to Australians about the costs of digital payments.”
RBA Governor Michele Bullock said that consumers and businesses will make less and less Australian cash payments.
“It’s time to deal with some of these high costs and inefficiency in the system,” he said.
The reduction of the limit on exchange fees by enterprises will generally benefit small enterprises as they pay higher wages.
The Central Bank found that small enterprises would be better $ 185 million under changes and 90 percent benefit.
Better transparency has been proposed by forcing card networks and large purchasers to publish what fees to promote competition between nets.
Any change will not start until July 2026.
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