{
  "id": 12545735,
  "title": "Coffee prices at some cafes rise by 10pc after RBA card surcharge ban",
  "url": "https://urgent.news/2026/10/07/coffee-prices-at-some-cafes-rise-by-10pc-after-rba-card-surcharge-ban",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-07T04:18:08.000Z",
  "source": {
    "name": "ABC News AU",
    "slug": "abc-news-au",
    "url": "https://www.abc.net.au/news/2026-10-07/coffee-prices-increase-up-to-10-per-cent/107237680"
  },
  "original_language": "en",
  "account": "Cafes and restaurants have begun increasing prices following the Reserve Bank of Australia's (RBA) ban on surcharges for card payments. The intention behind the ban was to lower prices, but instead, it appears to have led to unintended price hikes. Former RBA official Luci Ellis believes the ban will have little impact on inflation. Since October 1, when the ban came into effect, around 17% of cafes are now charging more for a flat white, which is nearly 10% higher than prices before the ban. The increase is significantly higher than the usual 0.5 to 1.5% surcharge on card transactions. Not all hospitality businesses have raised prices immediately following the ban. Avtar Singh, owner of a Thai restaurant, is absorbing the cost of the surcharge for now but plans to raise prices eventually. Wes Lambert, CEO of the Australian Restaurant and Cafe Association, stated that the government needs to recognize that small businesses are operating with thin margins. If prices are further squeezed, it could make business operations very challenging. Increasing prices can lead to a decrease in demand, which was an unintended consequence of the RBA's ban, as they initially predicted only a 0.1% price increase. Some businesses have started accepting cash-only payments or bank transfers to avoid surcharges. The RBA acknowledges that the ban may have been a mistake, as it was implemented during a cost of living crisis and high inflationary environment. The ban was designed to reduce card acceptance costs, particularly for small businesses, but the unintended consequence of higher prices suggests it may have failed in that goal. If the surcharge ban leads to higher inflation, the effect would likely be temporary and not impact interest rates, according to Westpac chief economist Luci Ellis.",
  "summary": "A ban on card surcharges has led some cafe owners to lift coffee prices. It's an unintended consequence of the Reserve Bank's card surcharge ban, which was intended to lower prices for consumers.",
  "key_points": [
    "17% of cafes now charge 10% more for flat whites post-RBA ban.",
    "Small businesses absorb surcharge costs, plan eventual price hikes.",
    "RBA acknowledges ban may have been a mistake during cost of living crisis."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}