Debit Card Surcharges Likely to Be Banned By 2026

[levelnine]

There is an end in sight for consumers getting hit with sneaky surcharges when they pay on card, with the federal government prepared to ban the practice by 2026, promising to give consumers and small businesses "a fair go."

However, any changes will not take effect until January 1, 2026 and are subject to further reviews by the Reserve Bank of Australia (RBA).

Debit card surcharges to be scrapped by 2026, government promises

There is an end in sight for consumers getting hit with sneaky surcharges when they pay on card, with the federal government prepared to ban the practice by 2026, promising to give consumers and small businesses "a fair go."

www.abc.net.au

 

[levelnine]

This strikes me as potentially quite significant for the points space in Australia.

It is going to put pressure on points issuers to justify the surcharges that credit card transactions will attract if debit cards become fee free.

 

[lovestotravel]

This strikes me as potentially quite significant for the points space in Australia.

It is going to put pressure on points issuers to justify the surcharges that credit card transactions will attract if debit cards become fee free.

Agree

Surcharges will be lowered as will points earn

 

[NoName]

Won’t surcharges just be incorporated into the advertised price? Which of course is how it should be. Every other business cost is included in the price.

 

[levelnine]

Won’t surcharges just be incorporated into the advertised price? Which of course is how it should be. Every other business cost is included in the price.

Prices will presumably go up to incorporate the surcharge from debit card fees, but there will still be additional surcharges for credit cards.

 

[muppet]

Cash has high costs of acceptance which are an excepted business cost. Honestly, for most businesses the 1% or so would be much easier and cheaper than managing cash, change, security and depositing cash.

 

[lovestotravel]

Cash has high costs of acceptance which are an excepted business cost. Honestly, for most businesses the 1% or so would be much easier and cheaper than managing cash, change, security and depositing cash.

Not if you believe the "Cash is King" crew.............

 

[NoName]

Prices will presumably go up to incorporate the surcharge from debit card fees, but there will still be additional surcharges for credit cards.

Surely this will just be a first step though? CC surcharges will also presumably be banned at some point after this.

 

[moa999]

If debit cards are broken out, then the blended remainder will likely increase.
So I'd suspect that surcharges will rise.

This might prompt some shift in behaviour - eg. People using debit over credit.