Australian businesses blamed for using card surcharge ban as cover for larger price hikes
Experts say cafes and restaurants are raising prices beyond the typical 1.5% surcharge fee under the guise of recent regulatory changes.
At a glance
- Credit card surcharges were banned from 1 October as part of Reserve Bank reforms
- Experts say businesses are using the ban as cover for price increases larger than the typical 1.5% surcharge
- Cafes and restaurants cite rising costs and interest rates as reasons for price hikes
- The surcharge ban aimed to improve transparency and lower bank fees for customers
Businesses in Australia are using a recent ban on credit card surcharges as justification for implementing larger price increases, according to experts. The surcharge prohibition, which took effect on 1 October as part of a Reserve Bank-led reform, was intended to improve transparency and lower bank fees for customers.
Cafes and restaurants are among those raising prices, with some using "round-up" pricing strategies on items such as coffee. Experts suggest these increases are exceeding the typical 1.5% surcharge fee that was previously charged. The businesses cite climbing costs and rising interest rates as reasons for the price adjustments.
Why it matters
The surcharge ban was designed to benefit consumers through lower fees and greater transparency, but experts suggest businesses may be offsetting lost surcharge revenue with broader price increases that exceed the original charges.
Original reporting
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.