Share this @internewscast.com

Australia’s central bank wants to remove surcharge fees on both debit and credit cards in a move it expects would save consumers more than $1 billion each year.
The Reserve Bank of Australia’s (RBA) review of merchant card payment costs recommends the fees be scrapped on EFTPOS, Mastercard and Visa card transactions as they don’t help consumers make more efficient payment choices.
Lowering the cap on interchange fees paid by businesses — another recommendation of the review — as well would save Australians $1.2 billion.
An interchange fee is paid by a business to a customer’s card issuer when a transaction occurs.
Treasurer Jim Chalmers had said the government was prepared to ban fees on debit card transactions from the start of 2026, but the RBA has included credit cards.
Consumers are estimated to pay $1.2 billion in surcharges on payments each year, the equivalent of $60 per card-using adult.
Scrapping surcharges would also mean consumers don’t need to switch between payment methods to try and avoid a fee, the report stated.
RBA governor Michele Bullock said both consumers and businesses benefited from the proposal as fewer Australians make cash payments.

Customers could dodge extra card fees, and businesses wouldn’t have to handle the high expenses associated with processing card payments.

“We think the time has come to address some of these high costs and inefficiencies in the system,” Bullock said.
“The payments landscape is always evolving, and it’s critically important that we keep pace to ensure it remains safe, competitive and efficient.”
The RBA proposed removing its own prohibition on “no-surcharge” rules to achieve the scrapping of the fees.
The bank expected the card networks would then follow by implementing “no-surcharge” rules based on historical experience and arrangements in other jurisdictions.
If that did not occur, the RBA would recommend the federal government legislate to ban surcharge fees.
Lowering the cap on interchange fees by businesses is predicted to benefit small businesses the most, because they often pay higher fees.
The central bank found small businesses would be $185 million better off under the changes, with 90 per cent of them benefiting.
Better transparency achieved by forcing card networks and large acquirers to publish their charging fees has also been recommended, in a bid for better competition between the networks.
Bullock predicted the proposals would spark much discussion, particularly among businesses that do surcharge, prompting a six-week consultation period on their plan.
Any changes won’t kick in until July 2026.

Share this @internewscast.com
You May Also Like

Mount Buffalo National Park Reopens Amid Intensified Search for Missing Dezi Freeman

Victoria Police have announced a new taskforce will take the lead in…
Bag cuts are now in place for recreational fishing in the two gulfs, but restrictions only apply to commercial fishers in Gulf St Vincent.

South Australian Anglers Upset by New Fishing Restrictions

South Australia’s recreational fishing enthusiasts are expressing strong discontent after the state…
ADF generic

Class Action Lawsuit Targets Alarming Sexual Violence Rates within Australian Defence Force

Women who claim to have faced systemic sexual abuse, harassment, discrimination, and…
Amazingly no one was physically hurt in the Burnley Tunnel crash.

Miraculous Escape: Driver Survives SUV Crush by Fuel Tanker in Tunnel Collision

A Melbourne driver has had an incredible escape after their car was…

Historic Reconciliation: King Charles and Pope Leo Unite in Prayer After 500 Years

Britain’s King Charles and Pope Leo have prayed together in the Vatican’s…
Trump pardons major crypto figure jailed for money laundering

Trump Grants Pardon to Prominent Cryptocurrency Figure Convicted of Money Laundering

US President Donald Trump has pardoned Binance founder Changpeng Zhao, who pleaded…
Tatiana Dokhotaru

Woman Described ‘Absolute Hell’ in Text to Friend Prior to Alleged Murder

Before her tragic and untimely death, Tatiana Dokhotaru revealed to confidants that…
Major university under investigation after underpaying staff $1.25 million

Top University Faces Scrutiny Over $1.25 Million Staff Underpayment Scandal

The University of Adelaide is currently under scrutiny following its admission of…
Victims of horror crash that killed young model lash out at system 'in tatters'

Families of Tragic Accident Victims Criticize Flawed System Following Young Model’s Death

The heartbroken family and friends of a young model who lost her…
President Donald Trump answers questions from reporters during a roundtable on criminal cartels in the State Dining Room of the White House

Trump Halts Trade Negotiations Over Controversial Ad: A Diplomatic Standoff

US President Donald Trump said late on Thursday that he was ending…

Urgent Call to Action: Telcos Urged to Resolve Triple-Zero Failures Affecting 10,000 Samsung Users

Thousands of Samsung mobile phone users risk being out of pocket to…
Trump insists he can strike suspected drug-smugglers without backing of Congress

Trump Asserts Authority to Target Suspected Drug Smugglers Independently of Congressional Approval

President Donald Trump has asserted that he retains the authority to conduct…