Businesses consider cash discounts as card surcharge ban approaches
Australian businesses may start offering discounts to customers who pay with cash after new rules banning card payment surcharges take effect on October 1.
The Reserve Bank of Australia’s surcharge ban will remove extra fees currently charged for many credit and debit card payments. The change is expected to save Australian consumers about $1.6 billion a year.
However, small businesses that previously relied on surcharges to cover payment costs will lose that source of income. Some owners have warned the change could put further pressure on their operating costs.
Financial experts say businesses may look for other ways to manage the extra expense. One option is to offer lower prices to customers who pay in cash.
Swinburne University Professor Steve Worthington said businesses that currently charge card surcharges could face higher costs once the new rules begin.
He said the ability to offer cash discounts could encourage both businesses and customers to reconsider how they make and accept payments.
Cash use has declined significantly in Australia in recent years, according to Reserve Bank data. However, it remains an important payment option, particularly for some older Australians and people who prefer using physical money.
Pro-cash campaigner Jason Bryce expects the surcharge ban could encourage more businesses to favour cash payments.
He pointed to countries including the Netherlands, France, Austria, Germany, Japan, Singapore and Switzerland, where card surcharging has been restricted or banned and cash remains more widely used.
The changes could therefore reshape how Australians pay for everyday goods and services, with cash discounts potentially becoming more common as businesses adjust to the new rules.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
Source : 9 News
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