US Edition‘Snowball Effect’: RBA’s Card Surcharge Ban Risks Higher Prices and Job Cuts
AUSTRALIA, JUL 14 – The Reserve Bank of Australia aims to save consumers and businesses $1.2 billion annually by banning card surcharges and lowering interchange fees to improve payment transparency and competition.
- The Reserve Bank of Australia recommended today that surcharges be prohibited for payments made using Eftpos, Mastercard, and Visa starting from July 1 next year.
- This proposal responds to a review concluding that surcharges no longer guide consumers toward cost-effective payment options, particularly as the use of cash declines and enforcing surcharge regulations becomes increasingly difficult.
- The RBA’s consultation paper includes reducing interchange fee caps, forcing card networks to publish fees, and fostering transparency and competition to help businesses shop for better deals.
- The RBA projects that the majority of Australian businesses—approximately nine out of ten—will benefit from the proposed changes, which could reduce surcharges paid by merchants by $1.2 billion annually, with small businesses most advantaged due to fees typically being near current caps.
- After public feedback closes on August 26 this year, the reforms will be finalized and could simplify payments but might also pressure some businesses to raise prices, adding about 0.1 percent to inflation.
25 Articles
25 Articles
RBA wants to scrap surcharge fees, says consumers would save $1.2 billion
The Reserve Bank of Australia wants to end surcharging on Eftpos, Mastercard and Visa cards. The fees were first introduced in 2003 to discourage people from using credit cards, but now they cost Australians more than $1 billion dollars a year.
ThePatriotLight - Reserve Bank Wants to End Card Surcharges, Consumers Predicted to Save $1 Billion
ThePatriotLight - An image of a Brisbane City Council parking payment machine—with a notice about card surcharges—under King George Square in Brisbane CBD, Australia on Dec. 7, 2024. Daniel Y. Teng/The Epoch TimesConsumers would save $1.2 billion a year under a proposal from the Reserve Bank of Australia (RBA) to scrap surcharge fees on both credit, debit, and EFTPOS cards.At present, the surcharge adds about $60 a year per card-using adult to t…
Reserve Bank Wants to End Card Surcharges, Consumers Predicted to Save $1 Billion
Consumers would save $1.2 billion a year under a proposal from the Reserve Bank of Australia (RBA) to scrap surcharge fees on both credit, debit, and EFTPOS cards. At present, the surcharge adds about $60 a year per card-using adult to the cost of banking. “Surcharging is no longer achieving its intended purpose of steering consumers to make more efficient payment choices,” the bank said in a statement. “Avoiding surcharges has become harder as …
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