Surcharges Axed for Government Transactions
In Australia, businesses often face merchant fees when processing card payments, and these costs are typically passed on to consumers as surcharges. While this might seem like a small inconvenience at checkout, it can have a significant impact, especially on small businesses and their customers, who often end up shouldering the higher costs compared to large retailers.
But just like winter on Game of Thrones, change is coming (the good kind though, no White Walkers!).
From 1 January 2025, surcharges for debit card payments made to the Australian Taxation Office (ATO) and Services Australia will no longer apply. This is a positive step towards making payments fairer and less costly for everyone involved.
The government is also looking into the possibility of a broader ban on debit card surcharges, potentially rolling this out by 2026. To tackle the issue of excessive surcharges more broadly, $2.1 million has been allocated to the Australian Competition and Consumer Commission (ACCC) to ramp up enforcement against unfair practices. Meanwhile, the Reserve Bank of Australia (RBA) is reviewing retail payment regulations to ensure payment systems are more transparent and efficient.
These initiatives reflect a broader commitment to creating a fairer payment landscape in Australia. For consumers, it means fewer surprise costs at the till. For small businesses, it’s a step towards levelling the playing field and reducing the financial strain of doing business. Change is on the horizon, and it’s a move in the right direction for everyone.
