Australia Considers Ban on Card Payment Surcharges Amid Consumer and Business Debate

The Reserve Bank of Australia is reviewing card payment surcharges, with proposals ranging from a partial ban on debit card fees to a complete prohibition on all surcharges.

• Qantas and Virgin Australia argue that banning card surcharges could lead to higher prices for consumers as businesses absorb payment processing costs.
• The federal government has announced plans to potentially ban debit card surcharges by January 2026, pending the Reserve Bank's review findings.
• The Commonwealth Bank and Mastercard advocate for a complete ban on all card surcharges, aligning with practices in regions like the European Union and the UK.
• Labor MPs have called for broader reforms, urging the Reserve Bank to eliminate all debit surcharges and significantly reduce merchant fees for businesses.
• Consumer advocates and the ACCC highlight concerns about excessive surcharges and lack of transparency, with reports of overcharging particularly affecting small businesses and consumers.

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