Cash Revival Expected as Card Surcharge Ban Looms

Australia's 'Cash is King' movement, led by James Bennett, expects a significant increase in cash usage after October 1. The Reserve Bank's looming card surcharge ban will prohibit businesses from charging fees for credit card and bank card sales, with an estimated $1.6 billion saved for customers.

However, economists predict that businesses may raise prices instead of wearing the cost themselves. To mitigate this effect, the Australian Competition and Consumer Commission (ACCC) has introduced a loophole allowing merchants to offer discounts for cash payments or alternative methods like PayID.

Cash is King's leader, James Bennett, believes people will respond positively to the change and that more businesses will start offering cash-only discounts. He expects an increase in cash usage, following a slow rise over the past 12-18 months.

Businesses already offer cash-only discounts for patrons, and supporters of the Cash is King movement expect this trend to continue. Bennett launched the Facebook group nearly three years ago after becoming frustrated with the decline of the cash economy in Australia.

The number of cash payments has risen to 15%, according to data released by the Reserve Bank of Australia (RBA) in April, and half of all Australians use cash at least once a week. The movement also rallied behind a national 'Cash Out Day' campaign.