Politics · Australia · 2 days ago
Sydney businesses push cash and minimum card payments after surcharge ban
A ban on card surcharges took effect in Australia on October 1 after the Reserve Bank said it was in the public interest.
The change affects businesses that can no longer pass card payment fees directly to customers as a surcharge.
In Sydney, some small businesses are urging customers to pay cash or setting minimum amounts for card payments.
Owners say absorbing the fees could cost them thousands of dollars, while economists have warned that businesses may raise prices to recover the costs.
The reforms also reduced the maximum fee banks can charge small businesses on consumer credit card payments, though the banking association said other payment companies may have raised their fees.
The tax office's plan to stop accepting credit card payments from some small businesses was delayed for a year after a backlash.
Business owners say they still need flexibility to manage these costs and cash flow.
Sydney small businesses are urging customers to pay cash or setting minimum card-payment amounts after a ban on card surcharges took effect on October 1.
The Reserve Bank of Australia said the ban was in the public interest, while Prime Minister Anthony Albanese said it could make coffee cheaper.
Some business owners say absorbing electronic payment costs could cost them thousands of dollars a year.
Economists have warned that businesses raising prices to recover those costs could contribute to inflation.
The government delayed for a year a separate ban on small businesses using credit cards to pay tax bills in instalments, following a backlash.
- Who
- Small businesses across Sydney, including restaurants, newsagents and a café.
- What
- Businesses are encouraging cash payments or setting limits on card use in response to the card surcharge ban.
- When
- The surcharge ban took effect on October 1, 2026.
- Where
- Sydney, including Leichhardt, Marrickville and Campbelltown.
- Why
- Businesses say they face electronic payment costs they can no longer pass on through surcharges.
Sydney small businesses
Reserve Bank of Australia and federal government
Effect of the surcharge ban
Sydney small businesses
Businesses say absorbing electronic payment costs could cost them thousands of dollars and put pressure on their operations.
Reserve Bank of Australia and federal government
The RBA said the ban was in the public interest, and Prime Minister Anthony Albanese said it could make coffee cheaper.
How businesses should respond
Sydney small businesses
Some owners are urging customers to pay cash or limiting card payments.
Reserve Bank of Australia and federal government
Not stated.
The ban on card surcharges took effect.
The government said it would delay for a year a ban on small businesses using credit cards to pay tax bills in instalments, following a backlash.
Alkalizer Café owner Shefali Pall welcomed the government’s announcement delaying the ATO credit-card ban.
- Card surcharge ban
- Took effect October 1, 2026
- La Botte D’Oro
- Leichhardt restaurant owner estimated a potential annual cost of $12,000 to $16,000
- Cranes Newsagency
- Marrickville owner estimated a potential loss of around $3,000 a month
- EFTPOS minimum
- Cranes Newsagency set a $10 minimum spend
- Opal card top-ups
- Cranes Newsagency set a $35 minimum spend
- Small-business credit-card fee
- Maximum fee on consumer credit-card payments fell from 0.8 per cent to 0.3 per cent of the transaction
What people are saying
The government is taking $16,000 out of my pocket.
If everyone uses the card, there is no profit.
Businesses need flexibility.
Sources
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