{"id":905252,"date":"2026-09-25T18:14:15","date_gmt":"2026-09-25T18:14:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/905252\/"},"modified":"2026-09-25T18:14:15","modified_gmt":"2026-09-25T18:14:15","slug":"discounts-set-to-follow-card-surcharge-ban-as-businesses-steer-customers-toward-cash","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/905252\/","title":{"rendered":"Discounts set to follow card surcharge ban as businesses steer customers toward cash"},"content":{"rendered":"

A ban on card surcharges<\/a> will come into effect in October, with discounts for paying by cash likely to follow.<\/p>\n

Businesses will not be allowed to charge customers more for paying with a debit card or credit card from October 1, but will be forced to absorb the costs incurred by card payments nonetheless.<\/p>\n

\u201cThose costs can be reflected in a business\u2019s overall pricing, rather than charged as a separate surcharge,\u201d according to the Reserve Bank of Australia (RBA)<\/a>.<\/p>\n

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\u201cThis is in line with consumer preferences for sticker prices to be all-inclusive.\u201d<\/p>\n

ING Head of Consumer and Market Insights Matt Bowen told Sunrise earlier this month that the win for customers will require many businesses to shake things up.<\/p>\n

\u201cJust because the fee disappears, it doesn\u2019t mean the payment processing becomes free for small businesses,\u201d Bowen said.<\/p>\n

The RBA website lists cash discount offers as one way to mitigate card costs.<\/p>\n

\u201cBusinesses that wish to steer consumers<\/a> towards other payment methods can do so by providing discounts instead of using surcharges,\u201d the RBA says.<\/p>\n

\u201cRemoving the RBA\u2019s prohibition on \u2018no-surcharge\u2019 rules is not intended to prevent discounts being offered to consumers for using certain payment methods.\u201d<\/p>\n

Cash advocate says businesses will \u2018go cash-only\u2019<\/p>\n

Cash Welcome spokesperson Jason Bryce said on Friday \u201cmost small retailers\u201d will start steering customers towards cash.<\/p>\n

\u201cMore small businesses will offer discounts for cash and many small businesses will reject card payments altogether and go cash-only,\u201d he said.<\/p>\n

These incentives are all above board, according to the RBA, which said businesses can decide the type of tender they take, \u201calthough there are some businesses which must accept cash<\/a>.\u201d<\/p>\n

\"BusinessesBusinesses are getting ready for the card surcharge ban by posting signage for cash discounts. Credit: Cash Welcome<\/p>\n

About 16 per cent of Australian businesses collect card surcharges, Treasurer Jim Chalmers said when the card surcharge ban was announced in March.<\/p>\n

\u201cThe card surcharge ban will push Australia to a new all-time record for the total value of cash on issue,\u201d Bryce said.<\/p>\n

The ban will apply to any payments made with prepaid, debit and credit cards.<\/p>\n

It does not apply to weekend surcharges, public holiday surcharges, or booking fees or service fees \u2014 only surcharges related to the costs incurred by a business accepting card payments.<\/p>\n

Signage required<\/p>\n

Any discounts offered for cash payments will need to be clearly outlined before customer transactions go ahead.<\/p>\n

\u201cPayment method discounts should be clearly disclosed before consumers choose to book, order or pay,\u201d the RBA states.<\/p>\n

Bryce said businesses<\/a> are already preparing for this transition.<\/p>\n

\u201cMany small businesses are preparing to replace card surcharge signage with \u2018cash preferred\u2019 or \u2018discounts for cash\u2019 signage,\u201d he said.<\/p>\n

The surcharge framework itself was brought in two decades ago to steer customers toward more efficient payment methods.<\/p>\n

The Payments System Board (PSB) found it was \u201cno longer achieving its intended purpose\u201d.<\/p>\n

Businesses increasingly surcharged all cards at the same rate, while consumers used less cash, were some of the factors that led to the PSB citing a reduction in the effectiveness of the surcharging regime.<\/p>\n

\u201cRemoving surcharging would make card payments simpler, more transparent and increase competition among payment service providers,\u201d RBA said.<\/p>\n

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