Card payment surcharges should be eliminated for debit and credit payments, the Reserve Bank has said, saving customers an estimated $1.2bn each year.
Surcharges on Eftpos, Mastercard and Visa card payments would be eliminated from July 2026, while fees for businesses using card payments systems could also be lowered, under a new RBA proposal.
The bank’s governor, Michele Bullock, said the declining use of cash had made it harder for Australians to avoid surcharges.
“We think the time has come to address some of these high costs and inefficiencies in the system,” she said.
But the Australian Restaurant and Cafe Association’s chief executive, Wes Lambert, said the proposal would drive up menu prices across the hospitality industry.