RBA Scrutinizes Payment Costs After Surcharge Ban

The Reserve Bank of Australia (RBA) has announced that the ban on card surcharges will not be the end of scrutiny for payment costs. According to RBA governor Michele Bullock, consumers have been paying $1.6 billion in surcharges each year, which is why the bank moved to eliminate this cost. From Thursday onwards, the cost of taking cards and cash will be built into the price of goods and services.

The ban on card surcharges was championed by Labor MP who argued that it would benefit consumers. With the removal of surcharges, businesses will now have to absorb these costs themselves. The RBA governor stated that just like electricity and wages, the cost of taking cards and cash will be included in the price.

This move aims to protect small businesses from high payment costs. Bullock emphasized that the bank's focus will now shift towards ensuring that payments are affordable for all businesses. However, the exact impact on small businesses remains uncertain at this point.