Card surcharge ban used as ‘cover’ for larger price increases by Australian businesses, experts say
News Source
•Tue, 13 Oct 2026 05:13:19 GMT
📰 What Happened
Credit card surcharges were banned in Australia from 1 October. The change was led by the Reserve Bank to make prices clearer and cut bank fees. The usual surcharge was about 1.5% of a transaction. But experts say some businesses are now raising prices by much more.
An online coffee tracker found 17% of cafes lifted their prices after the ban began. For those cafes, the average rise was 50 cents, or more than 10%. That is far bigger than the old 1.5% charge.
🔍 The Backstory
Experts say businesses are using the ban as cover to pass on other rising costs. These include higher produce, rents, wages and interest rates. A UBS economist said 'round-up' pricing in coffee shows the rises can be larger than the surcharge itself. The consumer watchdog, the ACCC, warned shops not to mislead customers.
It said dressing up a surcharge as another kind of fee may break the law. Business groups say years of high costs left them no choice.
🎯 Why It Matters
Consumers were promised clearer prices, not bigger ones. Watching how shops price goods helps people see whether the ban is really saving them money.
Credit card surcharges were banned in Australia from 1 October. The change was led by the Reserve Bank to make prices clearer and cut bank fees. The usual surcharge was about 1.5% of a transaction. But experts say some businesses are now raising prices by much more.
An online coffee tracker found 17% of cafes lifted their prices after the ban began. For those cafes, the average rise was 50 cents, or more than 10%. That is far bigger than the old 1.5% charge.
Experts say businesses are using the ban as cover to pass on other rising costs. These include higher produce, rents, wages and interest rates. A UBS economist said 'round-up' pricing in coffee shows the rises can be larger than the surcharge itself. The consumer watchdog, the ACCC, warned shops not to mislead customers.
It said dressing up a surcharge as another kind of fee may break the law. Business groups say years of high costs left them no choice.
Consumers were promised clearer prices, not bigger ones. Watching how shops price goods helps people see whether the ban is really saving them money.