The federal government wants to ban surcharges for debit cards burdening everyday shoppers and businesses by 2026 in a new plan announced ahead of the election.
Businesses incur costs for processing certain card payment types. Some businesses include these costs in their prices while others add a surcharge for card payments.
Treasurer Jim Chalmers said, “Consumers shouldn’t be punished for using cards or digital payments. And at the same time, small businesses shouldn’t have to pay hefty fees just to get paid themselves.”
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The change won’t come into effect until January 1st 2026, and is subject to a review by the Reserve Bank.
The Australian Competition and Consumer Commission (ACCC) has received $2.1 million to look out for unfair surcharging practices.
Australians are paying around four billion dollars on these surcharges every year when they pay by tap and go.
Just 12 per cent of purchases in Australia are made in cash. People making digital payments are charged an extra 1 to 5 per cent.
Nationals Senator Bridget McKenzie has told Nine the government’s not looking in the right direction.
“They’re protecting the banks. They’re protecting Visa and MasterCard and it’s our small businesses, our cafes, our pubs and our customers that are actually going to end up paying more,” McKeznie said.
A ban would bring Australia’s practice into line with the UK and parts of Europe.
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