{"id":611896,"date":"2026-09-26T00:42:34","date_gmt":"2026-09-26T00:42:34","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/611896\/"},"modified":"2026-09-26T00:42:34","modified_gmt":"2026-09-26T00:42:34","slug":"card-surcharge-ban-to-leave-some-shops-spruiking-cash-swallowing-fees-raising-prices","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/611896\/","title":{"rendered":"Card surcharge ban to leave some shops spruiking cash, swallowing fees, raising prices"},"content":{"rendered":"

Last financial year, bakery owner Dylan McQueen paid $5,785 in card fees, which he says came after years of displaying signs that read: “CASH PREFERRED.”<\/p>\n

While his laminated A4s led to an uptick in customers hunting for coins and notes to pay for their coffee and scrolls, cash was only 16 per cent of his transactions. \u00a0 \u00a0<\/p>\n

“People pay for convenience,” Mr McQueen said.\u00a0<\/p>\n

\"A<\/p>\n

Dylan McQueen says fewer than one in six transactions use cash. (ABC South East SA: Aiden McNamara)<\/p>\n

“They pay for it without them even realising.”<\/p>\n

The Mount Gambier baker said he never added a card surcharge, but he questioned whether it was a wise business move.<\/p>\n

“It’s just out of principle; I don’t believe in it,” he said.\u00a0<\/p>\n

Levelling the playing field<\/p>\n

From next week, businesses across Australia can no longer add a surcharge to card payments \u2014 meaning a $10 sandwich will cost $10 regardless of whether it is paid for with cash or a card.<\/p>\n

When the move was announced earlier this year<\/a>,\u00a0RBA governor Michelle Bullock said surcharging no longer worked as intended, and most consumers wanted it to stop.\u00a0<\/p>\n

The change, which takes effect from October 1, will mean shops cannot pass on the card fees directly.<\/p>\n

\"A<\/p>\n

Many small businesses encourage the use of cash while still accepting card payments. (ABC South East SA: Aiden McNamara)<\/p>\n

New limits will also be imposed on what banks can charge via interchange fees. The RBA estimated this would save businesses $910 million each year.<\/p>\n

Surcharge signs down, price tags up<\/p>\n

While the general public might appreciate simpler pricing, many businesses turned to surcharges in an effort to keep their advertised prices low.\u00a0<\/p>\n

Small business struggle<\/a><\/p>\n

Small business owners hit with rising costs will no longer be able to add surcharges on card payments from October 1. One operator in regional South Australia has described it as an “insidious cost creep”.<\/p>\n

Nursery owner Calum Haygarth said merchant fees made up “tens of thousands” in his annual operating costs.\u00a0<\/p>\n

He said it led margins on small items to “erode”, so card-paying customers paid an extra 2.9 per cent for products under $20.<\/p>\n

“It’s not justifiable to be running a business going backwards, basically,” he said.<\/p>\n

Mr Haygarth said while he recently noticed banks “scrambling” to lower their merchant fees ahead of the October 1 change, he believed he would still need to raise prices.<\/p>\n

\"A<\/p>\n

Calum Haygarth says he did not always enforce the surcharge for small card payments. (ABC South East SA: Aiden McNamara)<\/p>\n

“It’s just another added cost that we really don’t need,” he said, adding it was ultimately going to be unfair for cash customers.\u00a0<\/p>\n

Much like Mr McQueen down the road, the nursery owner said he also saw more shoppers searching their wallets for cash after he put up signage, but he did not expect a major comeback for physical currency.\u00a0<\/p>\n

“Unfortunately, that’s the way of the world,” he said.Who has cash on them anyway?<\/p>\n

The soft, sometimes-elusive beep of the card tap has become a sound far more common than the rattle of the till.\u00a0<\/p>\n

The past two decades saw a big drop in the amount of cash changing hands, although there was a slight rise<\/a> last year.<\/p>\n

Economist John Hawkins said about half of Australians used no cash in a typical week.<\/p>\n

“There’s a significant number of people now who don’t carry any cash with them,” Dr Hawkins said.<\/p>\n

He said the potential loss of customers was a “sufficient deterrent” to stop businesses ruling out card payments altogether.<\/p>\n

\"A<\/p>\n

John Hawkins says businesses pushing cash are generally trying to reduce fees and not trying to dodge taxes. (Supplied)<\/p>\n

Dr Hawkins said many shops promoting cash use were more motivated by avoiding fees than by dodging taxes.<\/p>\n

“[That’s] probably more a thing when a tradie comes around to do some work at your house and wants to be paid in cash,” he said.<\/p>\n

Dr Hawkins said the public did not appreciate that costs still existed for providing payments through cash as well.<\/p>\n

“One way or another people are going to have to pay for it and it’s proper that they should,” he said.<\/p>\n

Mr Haygarth said there were indeed some costs for using cash but, for small businesses, he did not believe it was comparable.\u00a0<\/p>\n

“It wouldn’t be anywhere near the cost of running credit cards,” he said.\u00a0<\/p>\n

Calum Haygarth is paid by the ABC on a contract basis for on-air contributions to a gardening program on local radio about once a month.<\/p>\n

More news from regional SA<\/p>\n","protected":false},"excerpt":{"rendered":"Last financial year, bakery owner Dylan McQueen paid $5,785 in card fees, which he says came after years…\n","protected":false},"author":2,"featured_media":611897,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,301406,301404,6932,301403,41107,219,301407,301405,111,139,69,16549,9045],"class_list":["post-611896","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-calum-haygarth","tag-card-surcharge","tag-cash","tag-cash-preferred","tag-cashless","tag-economy","tag-governor-michelle-bullock","tag-john-hawkins","tag-new-zealand","tag-newzealand","tag-nz","tag-rba","tag-reserve-bank-of-australia"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/611896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=611896"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/611896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/611897"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=611896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=611896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=611896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}