Reserve Bank wants to end debit and credit card surcharges from 2026

ABC NEWS (Australia)

The Reserve Bank wants to end debit and credit card surcharges saving consumers more than a billion dollars a year. Small businesses have expressed concern they may end up covering the payment costs. The changes will take effect in a year's time after a period of consultation.

Transcript

00:00With every tap comes a cost.

00:05Every time I get a coffee or anything else,

00:07always a surcharge and I don't like it.

00:10We are giving hard-earned money to the surcharge.

00:15Now the RBA wants surcharges banned.

00:18Latte.

00:19The manager of this cafe says if the ban goes ahead,

00:22she may have to raise prices to cover payment fees.

00:26We can't keep wearing all these cots as a business.

00:30Everything has gone up.

00:32The Reserve Bank says the proposal

00:34will save Australians $1.2 billion a year,

00:38about $60 per card user.

00:41It will cover both debit and credit cards operating

00:44on FPOS, Visa and Mastercard networks.

00:47Fees charged by card issuers to payment providers

00:51like Bank, Square and Tyro

00:53and passed on to businesses will be lowered,

00:56saving them about $1.2 billion a year.

00:59Fees would also be published

01:01to help businesses find the best deals.

01:04Many small businesses pay much more in terms of surcharges

01:08as a percentage than larger businesses do,

01:11so they shouldn't be left to carry the can.

01:14Experts like Brad Kelly say the bank should shoulder the cost.

01:18We are accessing our cash that's sitting in the bank.

01:21This is a bank problem that's being pushed on

01:23to small business and consumers.

01:25Treasurer Jim Chalmers says the declining use of cash

01:28and the rise in electronic payments

01:31is seeing more Australians slugged with surcharges.

01:34The RBA will now consult with businesses

01:37and the payments industry.

01:39If the card networks don't do what's proposed,

01:43the government could introduce new laws

01:45that ban surcharges.

01:47Copy up.

01:48The changes are expected to come into effect next July.

01:52The RBA.

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