Consumers to no longer pay fees when using debit cards | The Business | ABC News

For Australians who love to tap and go, using their debit card to pay for goods and services, there is often a hidden surcharge. Analysis of Reserve Bank data shows surcharges levied on each transaction, which can vary between merchants, have been costing Australians nearly $1 billion a year. The Albanese government has threatened to ban debit card surcharges by 2026 in a bid to protect consumers from excessive charges. In addition, the RBA will continue its review into the payments system, in a bid to reduce unnecessary transaction costs. Assistant Treasurer Stephen Jones has acknowledged the increasingly digital nature of transactions, promising to 'get a fair go for consumers.' Debate is continuing as to who should front the costs, with the lobby group for the big banks maintaining the service costs should be passed on to businesses. But the assistant treasurer says banks aren't passing savings made from digital economy onto small businesses and customers. The government has now sent a 'clear signal' to banks and payment providers, committing $2.1 million to the competition watchdog, the ACCC, to look out for illegal surcharging. In the meantime, it's still unclear whether the big banks or small businesses will wear the costs if consumers no longer pay. Small businesses owners say they are struggling under higher inflation and may have lift prices for customers if they are made to pay the surcharge.
#ABCBusiness
Subscribe: http://ab.co/1svxLVE

ABC News provides around the clock coverage of news events as they break in Australia and abroad. It's news when you want it, from Australia's most trusted news organisation.

For more from ABC News, click here: https://ab.co/2kxYCZY
Watch more ABC News content ad-free on ABC iview: https://ab.co/2OB7Mk1

Go deeper on our ABC News In-depth channel: https://ab.co/2lNeBn2
Like ABC News on Facebook:   / abcnews.au  
Follow ABC News on Instagram:   / abcnews_au  
Follow ABC News on X (Twitter):   / abcnews  

Note: In most cases, our captions are auto-generated.

#ABCNews #ABCNewsAustralia