Business · Economy · 1 day ago
Australian businesses adjust prices after card surcharge ban
A ban on extra fees for credit and debit card payments took effect in Australia on October 1.
It covers EFTPOS, Mastercard, Visa and American Express payments.
The Reserve Bank of Australia says the change is meant to make prices clearer for businesses and customers.
Businesses still have to pay banks merchant fees when customers use cards.
Some small businesses in New South Wales are raising prices to cover those costs, while others have not yet decided what to do.
The Australian Competition & Consumer Commission says businesses can include costs in their prices or offer payment discounts, but must clearly show the full price.
One Sydney cafe owner is considering a cash discount, while a bakery owner says he may raise prices in the new year.
Australia’s ban on businesses adding card payment surcharges took effect on October 1.
Small businesses in New South Wales are adjusting prices or considering other ways to cover merchant fees.
Sydney cafe owner Philip Barbaro has raised prices on some menu items, while baker Chris Skuce says he may raise prices in the new year.
The Reserve Bank of Australia says the change is in the public interest and is intended to make payments more transparent.
The Australian Competition & Consumer Commission says businesses must not mislead consumers about prices or the reasons for price changes.
- Who
- Small businesses in New South Wales, including Sydney cafe owner Philip Barbaro and baker Chris Skuce, are responding to the ban.
- What
- Businesses can no longer add extra fees for credit or debit card payments on EFTPOS, Mastercard, Visa and American Express.
- When
- The ban took effect on October 1, 2026.
- Where
- New South Wales, including Sydney.
- Why
- The Reserve Bank of Australia says the change is in the public interest and is intended to make the system more transparent and less confusing.
Reserve Bank of Australia
Small businesses
Purpose of the change
Reserve Bank of Australia
The ban is in the public interest and is designed to make the system more transparent and less confusing.
Small businesses
Businesses say merchant fees remain a cost they must cover, and some are raising prices.
Effect on customers
Reserve Bank of Australia
The change is intended to make the payment system less confusing for customers.
Small businesses
Business Sydney executive director Paul Nicolaou says consumers will bear the cost through price rises.
Business owners need to cover their costs, and unfortunately someone has to pay, and it is going to be the consumer.
For the group, we pay about $150,000 in merchant fees per year. Now that is a big hit to my business.
I haven't passed the cost on yet, but I will increase my prices at some stage probably in the new year.
must not mislead consumers about their prices or the reasons for any price changes
The removal of card payment surcharges took effect.
ABC Australia reported that small businesses were grappling with how to cover merchant fees.
- Effective date
- October 1
- Affected payment networks
- EFTPOS, Mastercard, Visa and American Express
- Barbaro’s group merchant fees
- About $150,000 per year
- Skuce’s expected price increase
- Probably in the new year
- Business location
- New South Wales
Sources
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