Will Debit Card Surcharges Soon Be a Thing of the Past?
Australians who regularly use debit cards for purchases often face hidden surcharges, which have collectively cost nearly $1 billion annually. In response, the Albanese government is considering banning debit card surcharges by 2026 to protect consumers from these fees. The Reserve Bank of Australia is also reviewing the payments system to minimize unnecessary transaction costs.
Assistant Treasurer Stephen Jones has vowed to ensure a “fair go for consumers” in a world where digital transactions are the norm. However, there’s an ongoing debate over who should bear the costs of these services—banks or businesses.
Small business owners fear they may be forced to raise prices due to the additional financial burden if they’re made to cover surcharges. The government has committed $2.1 million to the ACCC to monitor illegal surcharging practices, but it’s still unclear who will ultimately absorb these costs.
Source ABC