Small businesses divided over credit card surcharge ban reforms

Summarised from 2 outlets · Updated 9 Oct, 18:14 · Archive

Australia's credit card surcharge ban has drawn conflicting reactions from small business owners despite government claims it will save them money.

Labor's ban on credit card surcharges and accompanying Reserve Bank reforms have divided the small business community. The government and Reserve Bank argue the changes will benefit small businesses significantly. The reforms include caps on interchange fees—sums paid by merchants' payment providers to customers' card issuers—and improved transparency in card network pricing. Assistant Treasurer Daniel Mulino stated the measures would save small businesses $900 million annually, describing the reforms as necessary because 'Australia was an outlier' in its payment system transparency.

However, restaurant and cafe owners dispute these claims. The Australian Restaurant and Cafe Association says small businesses are actually losing out. Wes Lambert, the association's chief executive, argues that the changes will make scheme fees charged by card networks like Eftpos and Visa less transparent, contradicting the government's transparency claims.

Support for the reforms comes from consumer advocates. Choice's head of policy Morgan Campbell said consumers benefit from knowing prices upfront rather than facing surcharge surprises at the till. He acknowledged merchants faced a one-off price increase when the ban took effect, but suggested small businesses would eventually benefit by shopping around for better deals with card providers, resulting in lower costs over time.

How it is being reported

• Businesses not buying positive spin on surcharge banThe Reserve Bank says small businesses are expected to benefit the most from its card surcharge reforms, but restaurant and cafe owners say they are losing out.Perth Now · 9 Oct, 17:34
• Businesses not buying positive spin on surcharge banThe Reserve Bank says small businesses are expected to benefit the most from its card surcharge reforms, but restaurant and cafe owners say they are losing out.The West Australian · 9 Oct, 17:33

In this story: Reserve Bank · Daniel Mulino · Australian Restaurant and Cafe Association · Wes Lambert · Morgan Campbell · Choice · Australia

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