The Reserve Bank of Australia (RBA) has recommended a sweeping ban on surcharges for debit and credit card payments, declaring them an unnecessary financial strain on consumers.
In a bold move to protect shoppers, the central bank argues that transaction fees—often passed on to customers—should be scrapped to ensure fairer pricing at checkout. The proposal targets both online and in-person purchases, where hidden charges can inflate costs unexpectedly.
Why the RBA Wants Change
The RBA's review highlights how surcharges disproportionately affect everyday spending, particularly for small transactions. "These fees undermine transparency," the report states, noting that businesses increasingly use them to offset payment processing costs.
Impact on Consumers and Businesses
While retailers claim surcharges help cover bank fees, critics say they’ve become a profit centre. The RBA suggests alternative solutions, such as negotiating lower merchant fees with banks.
- Consumer savings: A ban could save households hundreds annually.
- Business adjustments: Retailers may need to absorb costs or adjust pricing.
If adopted, Australia would join the UK and EU, where card payment surcharges are already restricted.
