A government plan to ban debit card surcharges is causing controversy, with a pro-cash advocate arguing that this move will unfairly impact cash users. Australian shoppers pay around $1.5 billion yearly in card surcharges, leading to the Albanese Government’s decision to outlaw these fees, excluding credit card surcharges, to protect consumers and small businesses. The Reserve Bank of Australia will also review payment costs for retailers. The proposed ban could be implemented from January 2026, pending consultation with the RBA.
However, critics like Jason Bryce from Cash Welcome argue that shifting the cost of debit card usage to retail prices will negatively affect everyone. Bryce believes that cash should remain a payment option to keep fees competitive. Meanwhile, the government’s additional funding for the ACCC aims to crack down on excessive surcharges to protect consumers.