Aussies Flock to Cash as Card Surcharges Ban Looms

Australians are preparing to ditch their credit and debit cards in favor of cash payments due to a ban on card surcharges starting October 1. The Reserve Bank of Australia's payment shake-up will bar businesses from charging extra for card transactions, including EFTPOS, Mastercard, Visa, and American Express.

While some businesses may increase prices to offset the loss of revenue, others plan to offer discounts or perks to customers who pay with cash or alternative methods like PayID. This has prompted many Australians to vow to use cash exclusively for their transactions.

'Cash is always king,' said James Bennett, founder of the campaign group 'Cash is King.' He believes that once the surcharge ban takes effect, more people will switch to cash payments and businesses will reward customers who opt for this method.

According to RBA figures released in April, cash usage has increased to 15% of all transactions, with one in two Australians using cash at least once a week. Professor Steve Worthington, an expert on payment systems, agrees that the reforms could lead to a shift in how people choose to pay.

However, some experts warn that the ban may have unintended consequences, such as making prices less transparent for consumers.