Small business owners in Sydney are pushing back against the government’s ban on card surcharges, reintroducing cash payment incentives and minimum card spending limits. The Reserve Bank of Australia implemented the ban on October 1, 2026, aiming to save consumers $1.6 billion annually. However, economists warn the policy could fuel inflation as businesses raise prices to offset electronic payment costs.
Gabriele Franco, owner of La Botte D’Oro in Leichhardt, estimates losing $12,000 to $16,000 yearly if he absorbs card payment fees. He has posted a ‘cash is king’ sign, urging customers to pay with cash. Franco argues he cannot increase prices and that suppliers may also hike costs to cover electronic payment fees, threatening small businesses’ survival.
Geoffrey Ji, owner of Cranes Newsagency in Marrickville, has set a $10 minimum for card payments and banned credit card transactions altogether. He warns of a $3,000 monthly loss if he continues accepting card payments. The Australian Tax Office initially stopped accepting credit card payments from small businesses but delayed the ban after backlash.
Shefali Pall, owner of Alkalizer Café in Campbelltown, relies on credit card payments to manage cash flow and welcomed the delayed ban. Energy Minister Chris Bowen defended the policy, stating Australians benefit from reduced fees and no surcharges. Business NSW noted rising costs and red tape are making it harder for small businesses to operate.