The Reserve Bank of Australia’s decision to end surcharging on debit and credit card payments, is a significant win for consumers, including older Australians, COTA Australia says.
The Reserve Bank has announced surcharges will be abolished within six months. It will also reduce the cap on credit card interchange fees paid by merchants to banks from 0.8 per cent to 0.3 per cent of the transaction value.
COTA Australia Acting Chief Executive Officer Corey Irlam said the decision would help ensure Australians know exactly how much it will cost before they tap their card.
“Extra payment fees are a constant frustration for many older Australians, particularly as it becomes harder to use cash,” Mr Irlam said.
“People are increasingly finding they have little choice but to pay electronically, yet they’re being hit with additional charges simply for paying for everyday goods and services.”
Mr Irlam said removing surcharges would help provide Australians with payment options that don’t come with hidden extra costs.
“This is a long overdue reform that will be welcomed by many Australians, including older people who are concerned about the steady disappearance of cash,” he said.
“While it remains important that people can still access and use cash if they want to, consumers should also have access to a fee-free digital payment option.
“No one should have to pay extra simply because of how they choose to pay.”
Mr Irlam said Australians will be watching how businesses approach the change very carefully.
“We’re in the middle of a cost-of-living crisis that is hitting many Australians very hard. Businesses should think carefully how and when to increase their prices to incorporate these fees.”
Media contact: Tamara Kotoyan, 0430 291 890 or Alana Mew, 0419 929 722