RBA Plans to Scrap Debit and Credit Card Surcharges
- admin928749
- Jul 15
- 2 min read
Australians could save up to $1.2 billion a year on everyday shopping under a bold new proposal from the Reserve Bank of Australia (RBA).
In a move that could shake up how we pay, the RBA is recommending an end to surcharges on Eftpos, Mastercard, and Visa card payments.
Right now, Aussies fork out about $1.2 billion in card surcharges every year, according to the RBA — charges that pop up when you're paying for a coffee, dinner, or online shopping. But the bank says those fees no longer serve their original purpose.
“People used to avoid surcharges by using cash or cheaper cards,” the RBA said in a statement. “But with less cash use, and many businesses now charging the same fee no matter what card you use, it’s become harder for consumers to make cost-saving choices. It’s also really difficult to enforce the current rules properly.”
The RBA argues that scrapping surcharges altogether would make paying by card simpler, more transparent, and increase competition among card providers.
But not everyone’s cheering.
The Australian Restaurant and Cafe Association has come out swinging, saying small businesses will be the ones left footing the bill.
“If this goes ahead, businesses that were charging customers a small fee to cover card costs will now have to absorb those costs themselves,” said CEO Wes Lambert.
“That means higher prices across the board — so the supposed savings for customers will just get wiped out at the counter.”
The surcharge ban is just one of a few big changes the RBA is floating as part of its review of how card payments work in Australia.
Other proposals include:
Requiring card networks and large providers to publish the fees they charge, so businesses can shop around more easily.
Lowering the cap on interchange fees — the behind-the-scenes charges banks make when cards are used — which could save businesses another $1.2 billion per year.
According to the RBA, 90% of Aussie businesses would be better off under the changes, especially smaller ones who often pay the highest fees. They also say putting limits on international card fees could lower costs for anyone accepting overseas payments.
There’s still time for feedback — the public can have their say until August 26, before the final decisions are made.
You can read the full consultation paper on the RBA’s website.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
Comments