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Cafes, Shoppers at a Crossroads as Surcharge Ban Looms
The Reserve Bank of Australia says businesses must absorb card fees, while about 16% of businesses currently charge surcharges, Treasurer Jim Chalmers said.
- From Thursday, October 1, businesses across Australia can no longer add surcharges to card payments, meaning a $10 sandwich will cost $10 regardless of payment method.
- The Reserve Bank of Australia drove the reform after finding the surcharging regime was "no longer achieving its intended purpose," with businesses increasingly charging uniform rates while consumers used less cash.
- Aiming to cut costs by $910 million annually, the RBA reduced consumer credit card interchange fees from 0.80% to 0.30%, forcing businesses to absorb remaining payment processing expenses or adjust prices.
- Retailers are swapping surcharge signage for "cash preferred" or discount offers, while Flexischools introduced a 6-cent fee increase per student order and a $10 minimum to manage processing costs from October 1.
- The central bank estimates the policy could add about 0.1% to measured inflation if costs are built into prices, while experts predict the ban may encourage more cash usage as businesses seek payment alternatives.
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27 Articles
27 Articles
Sydney Morning Herald+3 Reposted by 3 other sources
No more card surcharges from today
From today, credit and debit surcharges are banned nationwide.
·North Sydney, Australia
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A cash comeback? Shops navigate looming death of card surcharges
Paying by card is a convenient and hugely popular option for most Australians, but surcharges cost small businesses thousands in fees each year. While many stores pass card fees directly onto shoppers, the RBA is set to change this from October 1.
·Ultimo, Australia
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Total News Sources27
Leaning Left5Leaning Right4Center4Last UpdatedBias Distribution38% Left
Bias Distribution
- 38% of the sources lean Left
38% Left
L 38%
C 31%
R 31%
Factuality
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