Retailers predict price rises under RBA's surcharge reforms
Surcharge bans are supposed to save consumers money but retailers say they're being forced to put prices up and are finding ways around the reforms.
Retailers are predicting price hikes in response to changes implemented by the Reserve Bank of Australia (RBA) regarding surcharges on credit and debit transactions. These reforms took effect on October 1st. Although the RBA aims to save customers around $1.6 billion annually through this initiative, businesses are discovering ways to recoup fees still owed to banks.
Despite a reduction in the cap on interchange fees, certain fees cannot be passed onto customers. Salon owner Sheridan Shaw has increased her prices due to the inability to absorb the additional costs. She expressed stress over the situation, acknowledging the financial struggles of her clients. The Australian Hairdressing Council's CEO, Fiona Beamish, expressed fear over the potential backlash from customers if prices are raised.
The ACCI disagrees with the RBA's claim that businesses will save $910 million a year, stating that small businesses will not benefit. Some small businesses are forced to absorb these costs, leading to price increases for consumers. Restaurant owner Peter Papas increased his prices and warned that some customers might stop patronizing his business.
Payment providers and card networks are now responsible for enforcing the new rules, replacing the Australian Competition and Consumer Commission (ACCC).
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
