Businesses scramble to offset new credit-card surcharge ban by the Reserve Bank
The Reserve Bank's October 1 reforms capping credit-card surcharges have forced many Australian firms to raise prices or seek workarounds, sparking concern among small retailers and industry groups.
On October 1 the Reserve Bank introduced sweeping reforms that cap the fees banks can charge businesses for credit-card transactions, projected to save consumers about $1.6 billion a year. Many merchants, however, are unable to absorb the remaining costs and are raising prices or exploring alternative payment methods. Salon owner Sheridan Shaw says the new fee structure forces her to increase service fees, while restaurant operator Peter Papas fears higher menu prices will drive customers away.
The Australian Hairdressing Council and the Australian Chamber of Commerce and Industry argue that small firms will bear the burden, with some costs likely passed on to shoppers. Simon Croft of the Housing Industry Association warns that higher processing costs could be baked into building material prices, pressuring housing affordability. Enforcement of the surcharge rules has shifted from the ACCC to card networks and payment providers.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage stresses the risk of renters falling into arrears and the lack of alternatives for tenants, while centrist coverage highlights businesses scrambling to absorb costs and the potential price hikes passed to consumers.
LEFT
Frames the surcharge ban as a hardship for renters, leaving them vulnerable to arrears with no payment alternatives.
CENTER
Frames the ban as a challenge for businesses, forcing them to raise prices or seek other payment methods, with costs likely shifting to consumers.
The left emphasises
- tenants who rely on credit cards to pay their rent could soon be forced into arrears
- no alternative for affected customers relying on credit
- advocates warn
