Australia Abolishes Card Surcharges in Bid to Save Consumers $1.6 Billion

Australia has abolished card surcharges, effective from today. Prime Minister Anthony Albanese stated that this reform could save consumers $1.6 billion a year.

The ban on card surcharges means businesses can no longer pass eligible card payment costs directly onto customers through a separate surcharge. The government estimates that consumers will save around $1.6 billion annually, while changes to interchange fees and other payment rules are expected to save small businesses about $910 million each year.

The Reserve Bank of Australia confirmed the surcharge changes in March, giving businesses several months to prepare for the new rules. However, some smaller operators remain uncertain about how the changes will affect their businesses.