Merchants will be banned from surcharging the cost of accepting credit and debit card payments from October 1 this year, in a suite of controversial reforms the Reserve Bank of Australia (RBA) hopes will ultimately drive down costs for traders and consumers.
Businesses pay a percentage of each transaction in fees each time they accept a card payment, and can currently offset those fees by passing them directly to customers.
Australian consumers pay an estimated $1.6 billion in surcharges each year.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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