The Reserve Bank of Australia’s (RBA) ban on card surcharges has come into effect, potentially changing how Australians use cash. Businesses may now offer discounts for cash payments, though experts predict only a modest shift in consumer behavior. According to the RBA’s 2025 Consumer Payments Survey, 50% of Australians used cash in a typical week, up slightly from 47% in 2022 but far below the 97% recorded in 2007.
Economists like John Hawkins from the University of Canberra and Angel Zhong from RMIT University agree that cash use may see a slight increase, particularly among older Australians, regional residents, and those with privacy concerns. However, they do not expect a significant reversal of the long-term trend toward card and mobile payments. "Australians moved to cards and mobile wallets mainly because of convenience, speed and record keeping, not because of price," Professor Zhong says.
Small businesses, facing pressure from reduced card surcharge revenue and higher operating costs, may offer cash discounts to offset payment processing fees. The Australian Competition and Consumer Commission (ACCC) allows such discounts, provided they are clearly disclosed. Meanwhile, businesses must avoid misleading consumers by attributing price hikes solely to the surcharge ban.