Australian Businesses Raise Prices Amid Card Surcharge Ban

Australia's ban on card surcharges has taken effect, and businesses are pushing back, claiming it will lead to higher prices for consumers.

The Reserve Bank of Australia abolished surcharges ranging from 0.5% to 1.5% for credit or debit card transactions versus cash payments and lowered interchange fees paid by businesses following a review.

According to the Labor government, the policy aims to provide cost-of-living relief to consumers, saving them A$1.6 billion ($1.11 billion) annually in fees, while businesses would also save about A$910 million.

Sydney bar owner Dre Walters stated that the surcharge changes will be passed on to customers, citing increased alcohol taxes and operating costs.

Peter Semaan, who runs the Rusty Rabbit Cafe, raised prices for food and cold drinks by around A$2 on average.