\u201cIf you ban surcharging without guaranteeing lower fees, small businesses have no choice but to absorb the cost and that will ultimately be reflected in prices,\u201d he said. \n<\/p>\n
\u201cSurcharging has been one of the only ways small businesses can recover these costs. If you remove that without fixing the underlying fees, you\u2019re asking small businesses to wear them.\u201d \n<\/p>\n
Treasurer Jim Chalmers welcomed the RBA decision, saying it would help with cost of living and support both small businesses and consumers. The RBA estimated that Australian consumers collectively paid $1.6 billion in surcharges annually. \n<\/p>\n
\u201cSmall businesses will no longer have to wade through complex surcharging rules and will be armed with more information so they can shop around for card payment services that meet their needs,\u201d he said. \n<\/p>\n
\u201cThe Australian Small Business and Family Enterprise Ombudsman will help small businesses understand changes and ensure they are well positioned to benefit from the reduction in costs.\u201d \n<\/p>\n
The RBA also anticipated that the changes would promote competition and efficiency in the payments system. \n<\/p>\n
\u201cRemoving surcharging would make card payments simpler, more transparent and increase competition among payment service providers. Removing surcharging also aligns with the preference of most consumers for payment costs to be incorporated into advertised prices,\u201d the central bank said. \n<\/p>\n
However, COSBOA argued that policymakers had acted prematurely in banning surcharging before ensuring that the lower fees were genuinely being passed onto small businesses. \n<\/p>\n
\u201cBanning surcharges before businesses can see lower fees and understand their costs is putting the cart before the horse,\u201d Addison warned. \n<\/p>\n
\u201cSmall businesses will need time to see the impact of these changes, adjust their pricing, and update systems. Without a practical transition, they risk being hit with the cost before the benefits arrive.\u201d<\/p>\n
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