Australian Businesses Warn of Higher Prices Amid Card Surcharges Ban

The Australian government's ban on card surcharges has taken effect, but businesses are warning it will lead to higher prices for consumers. The Reserve Bank of Australia and Australian Competition and Consumer Commission say businesses will still incur costs when accepting card payments, which should be reflected in their overall pricing.

Australian business owners are speaking out against the ban, saying it will force them to raise prices. Sydney bar owner Dre Walters said, '100% this will be passed on. I don’t know how the government is saying it will result in cheaper prices.' He added that small businesses like his are already struggling with increased alcohol taxes.

The Labour government claims the policy will save Australians A$1.6bil a year in fees and help provide cost-of-living relief to consumers. However, Macquarie analysts estimate the interchange fee removal would reduce Australian banking sector revenue by about A$900mil in 2027.