Small Businesses Fear Financial Hit from RBA's Card Surcharges Ban

Small businesses in Australia are facing a grim ultimatum as the Reserve Bank of Australia's (RBA) ban on credit card surcharges comes into effect on October 1.

The ban, which aims to save consumers $1.6 billion per year, will prohibit businesses from charging extra fees at checkout, but banks and providers will still charge merchant processing fees.

Cascie Heart, owner of Little Bread Winner, a Brisbane-based business that makes Australian-made breadboards, is already struggling with the costs. Her company has paid $6000 in face-to-face transaction fees this year, and she estimates that processing fees currently cost her between $25 and $80 every day.

Heart's Shopify fee is also set to rise from 1.6% to 1.7% on October 1, adding to her expenses. 'It feels like extortion,' Heart said. 'I honestly don't know what options we have left.'