Some Australian businesses are exploiting the recent ban on credit card surcharges to justify significant price hikes beyond the standard 1.5% fee, according to industry experts. The move comes as cafes, restaurants, and other retailers face mounting pressure from rising costs and higher interest rates, prompting concerns about whether the reform has simply shifted the burden onto consumers. The credit card surcharge ban, introduced as part of broader financial reforms, was meant to enhance transparency and reduce bank fees—but critics argue it may now be used as a pretext for broader price increases. With businesses struggling to adapt, the debate over fairness and economic impact continues to unfold.
‘Round-up’ pricing in items such as coffee suggests increases are exceeding the typical 1.5% surcharge feeFollow our Australia politics live blog for latest updatesGet our breaking news email, free app or daily news podcastBusinesses are using the recent ban on credit card surcharges as “cover” to pass along much larger price increases to customers, experts say, as cafes and restaurants struggle to cope with climbing costs and rising interest rates.Credit card surcharges, typically worth about 1.5% of the transaction, were banned from 1 October, as part of a Reserve Bank-led reform aimed at improving transparency for customers and, ultimately, lowering bank fees. Continue reading...
