Prices Will Rise If Card Surcharging Is Banned

This morning the AFR reports "Labor is preparing to outlaw debit card surcharges"

The proposal, as reported, will not ban card fees but simply hide them in the cost of goods and services, raising prices for everyone and squeezing small businesses.

Card surcharging at the retail point of sale is an Australian regulatory innovation that has always been stridently opposed by big banks, Visa and Mastercard.

Visa, Mastercard and the big banks want a ban on card surcharging so their merchant service fees are hidden from consumers and shared with all Australians.

Card surcharging at the retail point of sale provides consumers with clear, up-front information about the cost of their payment. They can choose which payment method to use - credit, debit, eftpos, cash, BNPL or other method, based on the surcharge information.

"A ban on card surcharging threatens to lumber all of us with a big rise in prices on all goods and services - on day one," said Jason Bryce, founder of the Cash Welcome campaign.

"This proposed ban on debit card surcharging will not make debit card payments free, just hide the cost away from the consumer.

"Already EFTPOS companies are jacking up their fees to consumers and rewarding merchants with Qantas Frequent Flyer points, often paid for by inflated card surcharges."

"People who use cash should NOT have to pay the costs of frequent flyer card users.

"A ban on card surcharging effectively means that costs are absorbed into all retail prices and paid for by all consumers, including people who pay with cash," said Jason Bryce.

"All retail payments in Australia must be surcharge-free for cash and surcharged at a cost-recovery rate for all cashless payment methods.

"The cost of Apple Pay is already hidden away, now they want to hide card costs away from us as well."

Cash Welcome is a campaign to protect our right to choose how we pay, backed by donations from consumers, business and the cash industry.

I have a petition that has attracted over 190,000 signatures:
https://www.change.org/SayNOtoCashlessAustralia

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