Australia’s card surcharge ban forces cafes, shops into price increases

Starting October 1, the Reserve Bank of Australia implemented a ban on card surcharges, meaning retailers can no longer charge extra fees when customers pay with credit or debit cards. While this was intended to save consumers about $1.6 billion annually, it may lead some businesses to raise prices instead. Smaller shops and local businesses are particularly concerned; Iris Isaacs, owner of online store inSync design, said it's getting increasingly difficult to manage costs. Salon owner Sheridan Shaw echoed similar concerns, stating that absorbing these fees would be detrimental to her business financially. Additionally, the Australian Chamber of Commerce and Industry (ACCI) warns that businesses might not be fully prepared for the new regulations. As a result, some merchants like Monarch Cakes in Melbourne are already planning price hikes to cope with higher bank-imposed card processing costs, which can amount to A$1,200 to A$1,500 weekly for small cafes and delis.