The government is warning banks and payment providers to stop charging excessive debit card transaction fees or face having them banned. The ban would come into force in 2026 and would be reviewed by the RBA which is looking at how to make transactions cheaper.
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00:00While this cafe looks busy, costs keep rising.
00:06The owners worry the ban on surcharges will be another cost the business will have to
00:11absorb.
00:12It shouldn't go on the businesses, so already businesses are struggling.
00:17But customers want change.
00:18It's estimated Australians are losing nearly a billion dollars a year, according to analysis
00:23based on RBA data.
00:26I don't like paying them, I don't think anyone likes paying them, and I think it's a pretty
00:31opaque system.
00:32We don't really know where they're going and how much is being charged to us.
00:36It's that transparency that the government's hoping to improve.
00:40Consumers are right.
00:41They don't think it's fair that they get slugged surcharges for accessing their own money.
00:47The lobby group for the big banks says it's a cost that has to be borne by business.
00:52We know that many businesses are surcharging over and above what they're allowed to do.
00:57When you use your card and choose the EFTPOS network, the transaction will cost the business
01:01an average of 30 cents on a $100 purchase.
01:05Otherwise the transaction will go through the Mastercard or Visa network, which will
01:09cost an average of 50 cents.
01:11Credit card purchases are even more expensive to process.
01:15The RBA review will look at options to reduce transaction costs.
01:19But if surcharges are banned, it's unclear whether banks or businesses will absorb the
01:23costs.
01:24They may have to pass it on to consumers in the form of higher prices.
01:29The government is threatening to ban surcharges by January 2026.