Warrnambool Businesses Skeptical of Surcharge Scrap

The Reserve Bank of Australia's (RBA) policy change to scrap the surcharge on credit and debit cards has gone into effect, but local business owners in Warrnambool are skeptical about its impact.

According to Jonathan Dodwell, a restaurateur with several businesses in Warrnambool, scrapping the card surcharge will not make it cheaper for consumers. 'It's just economics for you,' he said. 'They've passed on the fees, they're charging us.'

Dodwell estimates that his businesses will have to pay an extra $400 to $500 per week due to the removal of the surcharge.

Turgut Toprak, co-owner of Toto Espresso and Wine Bar, shares a similar view. The cafe never charged a credit card surcharge, but Toprak believes it's unlikely that other businesses will be able to pass on the savings to consumers.

In fact, Toprak revealed that his bank hasn't increased its fees, but Square's 'fast transfer' fee has been raised from 1.6% to 1.9%