Business · Economy · 1 hr ago
Some Australian cafes raise prices well beyond the former card surcharge
Australia banned credit card surcharges on 1 October as part of a Reserve Bank-led change intended to make prices clearer and reduce bank fees.
A coffee price tracker found that 17% of cafes raised prices after the ban began.
Among those cafes, the average increase was 50 cents, or more than 10%—far above the typical surcharge of about 1.5% of a transaction.
Economist Stephen Wu said strong consumer demand and high inflation may have given some businesses cover to pass on broader cost increases.
Cafe and restaurant businesses also face higher costs for produce, rent, wages and loans.
The competition regulator warns businesses not to mislead customers by blaming the ban for increases that reflect other costs or by disguising surcharges as other fees.
Consumer group Choice says customers benefit from seeing prices upfront, but it is too early to assess the full effect of the ban.
Some Australian cafes have raised prices by much more than the former credit card surcharge after the surcharge ban took effect on 1 October.
A survey of more than 1,500 cafes found that 17% had increased coffee prices since the ban began.
Among cafes that raised prices, the average increase was 50 cents, or more than 10%, compared with a typical surcharge of about 1.5%.
Economist Stephen Wu said businesses may be using the ban as cover to pass on broader cost pressures.
The Australian Competition and Consumer Commission has warned businesses not to mislead customers about the reasons for price rises.
- Who
- Some Australian cafes and restaurants have raised prices; experts and consumer advocates have commented on the changes.
- What
- Some cafes increased coffee prices by much more than the former card surcharge.
- When
- The surcharge ban took effect on 1 October. The article was published on 13 October 2026.
- Where
- Australia.
- Why
- Businesses face rising costs, including produce, rent, wages and loan repayments. Experts say the ban may also be used as cover for broader price increases.
Businesses and restaurant groups
Consumer advocates and regulators
Reasons for price rises
Businesses and restaurant groups
Businesses say costs such as produce, rent, wages and financing are rising.
Consumer advocates and regulators
The ACCC says businesses must not mislead consumers by attributing price increases to the ban when other costs are involved.
Effect of the ban
Businesses and restaurant groups
Wes Lambert said the ban may have prompted owners to pass on costs.
Consumer advocates and regulators
Morgan Campbell said consumers benefit from knowing prices upfront, even if some businesses raise them.
The ban on credit card surcharges took effect.
Small Flat White reported that 17% of cafes had increased coffee prices.
- Typical former surcharge
- About 1.5% of a transaction
- Cafes surveyed
- More than 1,500
- Cafes reporting price rises
- 17%
- Average coffee price increase
- 50 cents, or more than 10%
- Ban effective date
- 1 October
What people are saying
may be allowing merchants to use the change as ‘cover’ to pass through broader cost pressures
Maybe this is the catalyst that has caused cafes and restaurateurs around the country to wake up.
I don’t think there’s any shock in the way this is working
But consumers are better off knowing the price up front
Sources
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