Cash Preferred: Businesses Prepare for Card Surcharge Ban

A ban on card surcharges will come into effect in October, forcing businesses to absorb costs incurred by card payments. According to the Reserve Bank of Australia (RBA), this means costs can be reflected in a business's overall pricing rather than charged as a separate surcharge.

This change is intended to align with consumer preferences for sticker prices to be all-inclusive, as ING Head of Consumer and Market Insights Matt Bowen explained earlier this month. 'Just because the fee disappears, it doesn't mean the payment processing becomes free for small businesses,' he said.

The RBA notes that businesses can decide which types of tender they accept, but must clearly disclose any discounts offered for cash payments before transactions go ahead. This has led to some businesses preparing to replace card surcharge signage with 'cash preferred' or 'discounts for cash' signage.