The Reserve Bank of Australia introduced a ban last week on business owners adding extra fees for credit or debit card payments on EFTPOS, Mastercard, Visa and American Express. The RBA described the changes as being in the "public interest" and designed to make the system more transparent and less confusing for both businesses and customers.
Sydney cafe owner Philip Barbaro said he had been forced to put prices up for some items because his bank fees remain. "For the group, we pay about $150,000 in merchant fees per year. Now that is a big hit to my business," he said. "In my very competitive market in the city we have not touched the price of our coffee, but there were other items on the menu we had to increase this week, to offset the bank surcharge."
Chris Skuce, owner of the Jamaican Patty Bakehouse in Sydney's inner west, said he had been absorbing the cost of the bank fee to keep making the patties that were part of his childhood. "I haven't passed the cost on yet, but I will increase my prices at some stage probably in the new year," he said.
Paul Nicolaou, executive director of advocacy group Business Sydney, said people were struggling due to rising interest rates, energy costs and a drop in discretionary spending. "Business owners need to cover their costs, and unfortunately someone has to pay, and it is going to be the consumer," he said. Mr Nicolaou said banks and other payment platforms should be doing something about merchant fees. "It is all electronic now, does it require a fee?"
The ACCC said businesses could build the fee into their pricing structure but "must not mislead consumers about their prices or the reasons for any price changes". A spokesperson added that businesses can offer discounts for particular payment methods, such as cash or PayID, and this should be clearly disclosed before consumers choose to pay.