Do it in New Zealand, it's so annoying that companies push the merchants fees on you. Even high end hotels want an extra 3% to use credit card.
81
Careful-Calendar8922Mar 31, 2026
+13
We had it in the works and then act decided it wasn’t important and had declared it “dead in the water” herald has an article on it from this week.
13
Prestigious_Face7727Mar 31, 2026
+16
Processing fees in the EU are capped at 0.3% , visa and MasterCard still make a profit at those rates.
16
Expando3Mar 31, 2026
-8
Really?? 😳
Who goes into business for 0.3% gross returns?
-8
Prestigious_Face7727Mar 31, 2026
+19
Anyone who can skim off 0.3% of most consumer transactions with negligible cost per transaction.
19
Expando3Mar 31, 2026
+2
Should the governments ban this and make EFTs free through the banks? Aren’t the banks already making money from the loans we give them?
2
Prestigious_Face7727Mar 31, 2026
+3
That's effectively what's happening in the EU, yes, replacing visa etc with bank-to-bank
https://europeanbusinessmagazine.com/business/europes-24-trillion-breakup-with-visa-and-mastercard-has-begun/
3
Expando3Mar 31, 2026
+1
I guess the US won’t go for it because in the pockets of big business and cow-tow to lobbyists. Plus, anything that’s “free” does not count towards GDP. So, they want to game the GDP data by charging for every single thing.
1
doglywolfMar 31, 2026
+3
your forgetting the monthly APR where they also make their money
3
Lawdog87Mar 31, 2026
+4
No one. The majority of the money credit card companies make is from late payees and debt, not from the processing fees.
4
TirztrutideMar 31, 2026
-1
At least there is the option to swipe and save 2% if you don’t want to pay the paywave fee. In australia everyone will pay that fee now, even people paying with cash…
-1
Draxx01Mar 31, 2026
+4
The existence of a business overhead cost for dealing with a pure cash business is still there. It still is priced into overhead. Restocking tills, counting cash, delivery of new bills/dropping off the money is still an overhead cost. You're changing the nature of a largely fixed cost of one flavor for another.
4
SandySkittleMar 31, 2026
This will result in pushing the transaction part of the costs via price increases of the products themselves also onto consumers who dont use creditcards. F*** that.
0
Mindless_Purpose_760Mar 31, 2026
+5
You still writing checks to the cable company?
5
w3stvirginiaMar 31, 2026
-1
I write a check to every company that charges a fee to use a card or process an ACH. I’m not paying an extra 3% to the electric company or the county and state tax departments for the privilege of making *their* job easier.
Electronic payments should be fee free and checks should have a fee at this point. But they think it’s cheaper to have a human manually process checks and mail a receipt back.
-1
Mindless_Purpose_760Mar 31, 2026
+1
The CC should be free? I’m all for no charge on simplicity but the CC company makes its money via using your CC
1
w3stvirginiaMar 31, 2026
-1
No. I’m not talking about CC companies. I’m talking about the businesses that accept credit cards.
-1
Mindless_Purpose_760Apr 1, 2026
Gotcha
0
arcrencielMar 31, 2026
-5
The merchants will push the charges on you either way, in the form of higher prices. The other option is that they stop accepting card payment.
-5
Shatter_Mar 31, 2026
+19
That’s fine, at least we are aware of it. I travelled to America and it’s a hidden fees nightmare. No idea what you’re actually paying until you look at your bank statement — twice as bad when you’re visiting Vegas, as I was.
19
Over-Conversation220Mar 31, 2026
+4
I went to Vegas two years ago, after having not been for about 15 years. American so I’m used to the usual nickel-and-dime BS.
Having said that, I will never return. Absolute bonkers bs fees for existing on everything.
Used to be a fun, inexpensive place to visit, assuming you weren’t gambling. Now it’s a dystopian nightmare of surcharges and hour-long waits for Ubers and taxis.
4
nerdvegas79Mar 31, 2026
+7
Just like every other cost of doing business, which is fine by me.
7
MyHobbyAndMore3Mar 31, 2026
-1
it's like sales tax or VAT. it's either already included in price or added at checkout.
the difference is that you can avoid surcharge by just paying cash.
-1
HoobletonMar 31, 2026
+6
The different is that sale tax and VAT go to the government and ostensibly fund public services, while passing on merchant's fees just benefits private business.
6
theoxygenthiefMar 31, 2026
+1
Merchants always pass on the charge. In countries/places/businesses where there is no surcharge disclosed it just means they make 2% more profit off cash sales.
1
Shadow647Mar 31, 2026
Coincidentally those same merchants are providing goods/services that you are choosing to pay for, not the government
0
pepsimax33Mar 31, 2026
+27
Fun fact: it was the Reserve Bank which introduced the current card surcharge model back in 2003, on the basis that the transparency would enable consumers to make informed decisions. Previously, the card schemes used to prohibit surcharging my merchants.
27
greyeye77Mar 31, 2026
+3
at last! some moron in RBA realised how broken the idea was.
3
DacheinAusMar 31, 2026
+89
It’s extra fees on top of what the branded cards charge for processing. This does nothing for the consumer except remove the “2.49% additional to use a card”
“Payment schemes will still cost money to operate and businesses will still have to pay providers.”
89
UpstairsSwimmer3445Mar 31, 2026
+78
Yes, but knowing the cost of something beforehand is better than being hit with an unexpected surcharge.
78
SplinterfightMar 31, 2026
-38
It still comes up on the screen and there’s a sign
-38
ShowMeYourCodePornMar 31, 2026
+9
There is one particular terminal that just say "total is $10, surcharges may apply" then charges whatever they want.
9
AbbrahanMar 31, 2026
+14
Not always, more than once I had to provide evidence to my bank that a store didn't have a surcharge sign anywhere in their store even though they charged one. (and no the terminal didn't warn me of the surcharge until after the payment went through)
14
SydnxtMar 31, 2026
+3
It's easier if we just get rid of the surcharge and raise all prices on the menu by a few per cent. At least when you get to the counter you'll know exactly how much you owe.
3
skUkDREWTcMar 31, 2026
+34
> Debit and credit card surcharges will be gone by October under Reserve Bank reforms, with big banks likely to foot the bill for the cost-of-living measures.
Lol. Pull the other one. As if the banks are going to absorb the cost.
34
SplinterfightMar 31, 2026
+8
Yeah prices will just go up to cover it
8
yeahcxntMar 31, 2026
+23
the price was already up. now they simply need to include it in the price instead of tacking on an extra charge at the checkout
23
DruggedhippoMar 31, 2026
+8
Which is how Australia operates with *all* of it's prices.
Australian Consumer law requires all fees and charges be advertised upfront, it's illegal to add a charge at the end.
https://www.accc.gov.au/business/pricing/price-displays
> Misleading drip pricing practices
> ‘Drip pricing’ is when a price is advertised at the beginning of an online purchase, but then extra fees and charges (such as booking and service fees) are gradually added during the purchase process. This can result in consumers paying more than they initially intended to.
> Businesses must be upfront and clearly disclose to consumers at the start of a purchasing process the types of fees that will apply and when.
And it's one of the reasons that whilst not illegal, tipping is basically non-existent outside high end "edgy" restaurants. Prices of things on the menu are exactly how much they cost.
8
Low-Country6397Mar 31, 2026
They'll just find another fee to sneak in or raise account keeping charges. Banks never lose.
0
theo-appsMar 31, 2026
+17
These fees were incredibly annoying when I last visited as a tourist. I've never experienced these fees before in other countries, at least not widespread. It felt like these companies felt like processing cash is free when it's not.
Cash takes time to count, transaction times are slower, mistakes can happen, it can be lost, higher chance of robbery, etc. It was crazy of them to charge such high fees.
17
Diligent-Taro856Mar 31, 2026
+5
I see a lot of credit versus cash prices in the US. Yeah a lot of the business treat cash as a factored in cost with credit being surcharged.
5
TorranMar 31, 2026
-4
The advantage of cash is that you save a lot of money on taxes so it is worth it.
-4
redsterXVIMar 31, 2026
+7
I've experienced it before, but not anymore for 10+ years until I travelled to NZ and AUS last year.
And yea, cash is crazy expensive but that fact is always ignored. I'd add that it has to be transported, and coins are heavy. And that you need to keep a sizeable stock in store, which also bears the cost of opportunity, i.e. you can't use that money to add more goods to your store or invest it im other ways. Oh, and somehow you always have to organize coins in the morning and deposit bank notes in the evening somewhere ... while bank branches become rarer, so ways longer.
7
hananobiraMar 31, 2026
+2
NPR did a study a few years back and found that for the store, debit cards were cheapest, cash was second most expensive, and credit cards were most expensive. Sure, there are charges associated with cash (securing the cash, having to reconcile the cash drawer, etc.) but it still didn’t add up to as much as the credit card processing fees.
2
theotherWildtonyMar 31, 2026
+2
I don't know why people lose their shit over this. Heap of big retailers like Bunnings, JB HiFi, Kmart, Woolworths, Coles, and most petrol stations and plenty of small ones like mine already don't charge you a surcharge so nothing will change.
Allowing businesses to charge a surcharge is anti consumer. Nothing is more irritating than seeing huge organisations like Australia Post of Harvey Norman charging card surcharges that are 50% more higher than my bank charges my tiny small business to accept card payments. And there is no way to check they aren't scamming you.
The businesses don't give a c*** what the banks charge because they aren't paying it which is why you get stupid situations where for example, Gloria Jeans will charge a 1.5% surcharge while Starbucks will charge 1%.
I'm sure once Gloria Jeans has to wear the card fees they'll go to their bank to get the same deal as Starbucks instead of just letting their customers get ripped off by their bank.
2
InewbzMar 31, 2026
+2
Where I work eftpos payments with debit cards avoid surcharges and credit card payments only have a 0.8% surcharge with no minimum payment.
I really wonder why other places have 2%+ surcharges and if they really pay that much in credit fees
2
i0unothingMar 31, 2026
+4
A lot of chest beating from various sects and industries but this seems like a nothing article. Where is the details of what is being changed?
Are local businesses absorbing the processing fees? Or is it a flat out ban so no one is paying.
I'll wait but I'm skeptical this won't be half baked when they cave to banking and credit card companies.
4
planetarybumMar 31, 2026
+10
Cash payments aren't keeping costs down. Whether we like it or not, the use of cash is dwindling, and people seem oblivious to the fact that it is a manual labour-intensive form of payment.
A couple of months ago the government had to mandate certain essential services to accept cash.
Meanwhile banks and larger businesses have had to prop up Armaguard who were going broke.
Cash is still essential, especially in regional areas but is becoming more and more costly to produce, handle, and distribute.
Businesses can't have it all ways. The consumer already pays indirectly to keep cash flowing, so it should be incorporated in the cost of doing business instead of being subsidised.
10
Careful-Calendar8922Mar 31, 2026
+6
We don’t even have banks in a lot of smaller towns in NZ anymore. I’m in a “lucky” area where we have a banking “hub” that rotates through each bank one day of the week, but they don’t accept cash deposits, you have to drive to the bigger city for that, and they mostly exist so the local businesses can get out cash, and they regularly close early and have a sign to go to the atm. Cash is not well supported anymore.
6
Womb8tMar 31, 2026
+3
Cash is a major PITA for small businesses. Having to carry a float, count cash and bank it, with fewer and fewer branches.
It’s been made to look attractive because of the ridiculous surcharges banks charge for EFTPOS, which retailers were encouraged to pass on with a fee.
3
ElusiveGuyMar 31, 2026
+3
Here's the actual details: https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/
Looks like a combination of businesses absorbing the surcharge but also lower fees due to the new cap, so banks will need to eat the rest.
3
beadzyMar 31, 2026
+3
anyone in the US remember when biden did this with credit cards and how one of first things trump did was to overturn it?
3
Alexis_J_MMar 31, 2026
+8
When the US state of Maryland banned gas stations from charging extra for using credit cards, many of them simply switched to cash only.
What happens if Aussie businesses decide the incentives aren't enough for them to keep accepting the cards?
8
FobhealachNuaEabhracMar 31, 2026
+28
In NYC so-called "cash discounts" aren't uncommon. Rather than charging a 3.25% credit card fee, they just offer a 3.25% d******* on the listed price if you pay in cash.
28
stainless5Mar 31, 2026
+6
they've got to be saving more than the credit card fee then, they mustn't be listing the sale or something because at least here in Australia the cost to move your money into a bank unless you do it yourself at the end of every day usually adds up to more than the card fee anyway. most trades and some small businesses are actually card only now because moving money around just costs too much.
6
TheNumberOneRatMar 31, 2026
+3
The grandmother at my local banh mi place gives me a sly wink. a fifty cent d******* and extra meat when I pay cash.
3
Mr_November112Mar 31, 2026
+4
Those businesses are run by morons who don't understand that cash has a price too
4
bigblackman2Mar 31, 2026
+6
Or it's a tax dodge
6
NoSpoilerAlertPleaseMar 31, 2026
+2
Ding ding ding ding
2
InfinitelyThirstingMar 31, 2026
+2
The cost of cash isn't 3% of every transaction though. Like yes, you pay someone maybe an hour of labor a day to count it. That's absolutely nothing compared to credit card fees.
2
Mr_November112Mar 31, 2026
+1
Never said its as much as 3%, but also it's more than just the counting. It's slower so for some businesses that means lower throughput and customers, and you have the risk of holding cash on premises which can be stolen and/or need insured.
1
UzorglemonMar 31, 2026
+17
Aussie here. Absolutely wouldn't happen - we're a very card/phone centric society when it comes to payments.
17
Large-Garden4833Mar 31, 2026
-4
Which is sooo sad. Your money is so pretty, I hope people keep using cash there.
-4
MinguseyesMar 31, 2026
+3
We will continue our traditional usage of accepting $100 bills to avoid tax and then burying them in the back yard.
3
NoOneLikesMegGriffinMar 31, 2026
+18
Unlikely that Australia will go back to predominately using cash over cards. Card is cleaner and more convenient for a lot of consumers. More likely that businesses will increase the cost of goods and services to cover the card fees.
18
strikethreeMar 31, 2026
+5
It’s like how the rest of the world deals with tips… they don’t surcharge consumers, it’s just baked into the price
5
Careful-Calendar8922Mar 31, 2026
+1
Honestly if we go “back” to anything it’ll be bank transfers.
1
BroueMar 31, 2026
+17
They may think they’re saving money, but they actually lose more in missed business.
It’s the same debate around accepting Amex, yes, the fees are higher, but those customers will just go somewhere else if you don’t accept it.
17
SplinterfightMar 31, 2026
+2
Problem is, now they have to average the Amex charge across everyone. The system would be better if they just put the transaction fees on the card
2
welkoverMar 31, 2026
+1
The main issue with Amex for a business is the charge backs. Compared to other vendors if you take an Amex swipe and the customer later decides they don't want to pay and they call Amex and say so Amex will just pull the money back and not pay the business. A lot of the people who have an Amex card know this and when they intend to not pay out comes the Amex. It's a huge problem in food and beverage, where margins are already tight.
1
skuunkMar 31, 2026
+18
The opposite will happen. They will put the surcharge into the price so that everyone pays more.
18
planetarybumMar 31, 2026
+13
We already pay for it. Handling cash costs businesses more money than electronic payments now. That has always been included in the price.
13
stainless5Mar 31, 2026
+3
that seems kinda like cutting off your nose to spite your face. at least in Australia businesses pay more than what the credit card surcharge is worth Moving their money to banks. that's why some businesses are card only.
3
HourPlate994Mar 31, 2026
+2
Nothing will happen is my guess, except the servos will die a little earlier than they would have otherwise.
Aussies rarely carry cash and many don’t even carry physical cards anymore.
Even most hotels are fine with a digital credit card now, and the only place I’ve been recently that did not accept a digital drivers licence and demanded physical ID was Parliament House in Canberra (if you are going to the non-public area).
2
DifficultCarob408Mar 31, 2026
+2
Said businesses will end up liquidating in the near future. Asides from rural towns (where it is more out of necessity than anything) we almost never use cash in most circumstances.
2
NSFWarMar 31, 2026
+4
We aren't a cash based economy like the US is, especially in the cities. Sure there are some old blokes fighting the cash fight, 90 percent of people only do cards. ATMs and bank branches have dwindled considerably over the years
4
Careful-Calendar8922Mar 31, 2026
+2
In aus and nz, the govt has had to mandate businesses keep accepting cash in some industries and lots of areas don’t have banks or banks won’t accept cash deposits. So it’ll be a process increase rather than a push for accepting cash. It’s expensive to handle cash here and banks punish you for it basically.
2
chapsandmuttonMar 31, 2026
+2
I guess that's where the free market comes into play. There were a few places around me in CA that only took debit 15 years ago. I haven't run into that in a while, the locations have since turned over to gas stations that take credit.
2
matjoemanMar 31, 2026
Gas stations in California usually charge extra for credit.
0
chapsandmuttonMar 31, 2026
And the free market absorbed the cost for convenience.
0
OsamaBagHoldingMar 31, 2026
+1
Probably barter with vegemite
1
TigerUSA20Mar 31, 2026
+1
The market will just go back to how it was about 20 years ago when there was no such thing as “cash/credit”. Basically one price for each of the different gas grades. It will just now be higher for all payment methods.
The one price wasn’t too much of an issue in the 20th century as gas prices were such that the credit card fees amounted to 3-5 cpg, so it absorbed together pretty easily.
Today with prices going toward U.S. $5 / gallon, and escalating card fees, the cost of credit is about 12-15 cpg. So more significant today.
These sort of legislative actions just make it more expensive for the former cash customers.
1
Different_Fox_6197Mar 31, 2026
+2
A coffee is five dollars
A coffee paid for with a card is five dollars and fifteen cents
This ban comes in
A coffee is now six dollars
2
Real_Human_Earth_BoyMar 31, 2026
+1
Will the local Chinese takeaway still offer a 5% d******* for cash payment?
1
ConfidentLobster2962Mar 31, 2026
+1
I guess I'll open an Aussie account.
1
IAmLegallyRetarded_Mar 31, 2026
-3
Australia being owned by the credit card companies lobby.
-3
cyb3rfunkMar 31, 2026
+2
Yep and people are cheering
2
AndreaMolinariTrentoMar 31, 2026
Banking should be free for commoners. As is the case in India & China.
0
bignuts3000Mar 31, 2026
It was a way to offset the cost that banks charge businesses for accepting payment by card. No fees on cash payments. Now businesses will have to add a cost to everything to cover the bank fees or offer a d******* for cash….
0
Careful-Calendar8922Mar 31, 2026
+2
Cash costs more to process than the fees for cards. Depositing cash is considered a “banker assisted deposit,” which is at least $3 per deposit depending on the bank, and can increase quickly for unrolled coins, then if you want to available immediately you need to pay for an express deposit or it won’t be available until the next business day. Aus and nz banking is not cash friendly anymore.
2
InfinitelyThirstingMar 31, 2026
+1
$3 per day is still much smaller than 3% of every transaction, don't be absurd. Cash is far cheaper than credit cards.
1
Careful-Calendar8922Mar 31, 2026
+1
$3 per transaction, plus wages for counting time, plus same day fees, plus access fees, plus fees for high volume of your deposit takes them over the amount they want to have on hand. Then you’ve got the petrol to drive to a bank that accepts cash (most don’t here anymore), RUC, payroll for that, increased prices for your business insurance if you regularly have more than $1000 on premise, plus you have to have upgraded to a bank plan that allows banker assisted transactions,
Aus and nz are NOT cash friendly. You can’t just go to your local bank and deposit cash. I don’t have a bank capable of accepting cash within 75km of me. I have one that will dispense cash 2 days a week if it’s under $1000 and you arrange ahead of time.
The c**** way to do things in aus and nz is bank transfers and has been for about 20 years now. It’s the preferred method for everything from marketplace sales to sausage sizzles. No fees outside of the account establishment fee, and a lot of banks will wave business fees if they have a high enough volume of digital transactions coming through. Hell, it’s the method to collection donations for tangi (funerals) and school trips even.
1
bignuts3000Mar 31, 2026
+1
The problem is we have all got used to paying for everything with our phones and a lot of people don’t use cash.
1
Careful-Calendar8922Mar 31, 2026
+2
Bank transfers have been a thing long before phones to pay were really a thing. I have distinct memories of logging on at a net cafe to pay my ten and send money to a mate to go halves on a bottle of vodka back in 2005. Cash hasn’t really been a priority over here for a very long time. We also phased out things like cheques and whatever the hell “money orders” are never really took off here. We went straight from cash to digital. Credit cards have enjoyed an uptick in recent years and eftpos is convenient, but bank transfers have been the real consistent thing for over 20 years.
2
InfinitelyThirstingMar 31, 2026
-1
Most of what you're saying is bullshit. Businesses do not deposit cash after every transaction, so that $3 is once per deposit, which may not even happen daily, not per *transaction*. Only a failing business needs to be paying for same day access fees, because you shouldn't be so close to having no money that every day's deposit is desperate.
I'm very sorry your country has become so cash-unfriendly at a banking level, though. That seems insane to me.
-1
Careful-Calendar8922Mar 31, 2026
+1
Businesses deposit every day, which is a minimum of $3 per day on top of all the other fees. Which is $3 per transaction with the bank. Again, keeping cash on premise increases your insurance costs as it’s a risk factor. Ram raids saw that become a permanent part of our culture.
Most businesses here aren’t large, and having cash tied up hurts them, we aren’t a land of chain stores, but mum and pop businesses. Economic upheaval usually sees lots of businesses close.
You don’t need to be sorry, we haven’t really needed or wanted cash for at least 20 years. Bank transfers and digital transactions have long since overtaken cash. The demand for cash slumped well before banks stopped taking or offering it, it’s just not convenient. School trip? Bank transfer the teacher. Kids roadside stall? Bank transfer them whatever you are paying for, food stall? Bank transfer, donation for a funeral? Bank transfer.
I bank transfer the lady I get my eggs from, even have it on an auto pay. Under $60,000 a year you don’t have to register for gst, and it’s classified as a hobby as feed and upkeep cost more than she makes from eggs on average. Same for any produce I don’t grow.
I bank transfer my rent. I bank transfer my subway order, bank transfer my nieces birthday money, etc.
Our system just hasn’t really needed cash for a long time. It may seem insane to you, but honestly most of us wonder why the USA and some other counties are so obsessed with cash. You have to deposit it to pay for anything big anyways. From what I understand other countries let you turn cash into something similar to a cheque to pay for rent, (I believe that’s what a money order is), and your things like car dealerships actually have cash registers, while ours have long been cashless. I’ve also heard other countries still issue cheques for pay and things like tax refunds, but those are all direct to bank here even for the smallest businesses and we haven’t done cheques or cheque cashing in nz since 2021 and aus is phasing it out currently with a very limited number of cheque types being accepted.
Different societies have different normals. Ours doesn’t really include cash, yours does.
1
InfinitelyThirstingMar 31, 2026
+1
>Businesses deposit every day, which is a minimum of $3 per day on top of all the other fees. Which is $3 per transaction with the bank
Yeah, $3 per deposit. Whereas the credit card processing company takes an average of 3% *of every transaction between business and customer*, **plus** a set fee per individual transaction. Square, for example, charges 15¢ per transaction plus 2.6% of the total. For every time a customer uses a card or taps. Cash costs nothing per transaction *between business and customer.* Twenty customers on Square has already cost way more than the single $3.
It's sad that you're advocating that anyone be able to spy on every transaction you make. Cash lets you still have privacy. I do think it's insane that your whole country apparently doesn't care about that.
1
Careful-Calendar8922Mar 31, 2026
+2
Square isn’t a thing here. And again, that’s one of the MANY fees. If you deposit $5000 or more at a time you get hit with a percentage fee, if your amount leads to a transfer you get hit with a transfer fee, if your bills aren’t organized you get hit with a counting fee, you have to upgrade to an account that allows cash deposits and that’s a monthly fee as well. The fees add up to (according to the latest roundups) between 4-11% once labour and transport are figured in. The vast majority of transactions here are eftpos, which run at 0.3% in aus, followed by visa and Mastercard which run at 0.5%, only a few outlying private card companies get the 1-3% fees.
Cash brings more scrutiny here, not privacy. It’s strange to me that people worry about “privacy” so much when your bank withdrawals are definitely tracked and your movements as well. I guess the illusion of privacy is important to some people?
100 Comments