Cafes, shoppers at a crossroads as surcharge ban looms

A ban on card surcharges is set to come into effect, which could potentially benefit Australian shoppers. However, retailers may raise prices or banks may offset losses by eliminating rewards. Under the new rules, businesses must either absorb the cost or pass it onto customers. Some experts believe offering discounts for cash or payment services could result in up to a 10 percent savings on transaction prices.

While cash usage is currently low at just 15 percent, the RBA hopes the ban will encourage more people to use cash, especially with the rising cost of living. Smaller businesses, like cafes and restaurants, are more likely to pass the cost onto customers. The RBA plans to publish pricing information from card networks, giving retailers better visibility on merchant fees. The ban could save consumers over a billion dollars, but someone will have to pay the price.