Small businesses in the Australian state of New South Wales are reviewing their prices and ways of covering card acceptance fees after a ban on additional charges for card payments. The restriction, introduced by the Reserve Bank of Australia, came into effect on October 1 and applies to payments via EFTPOS, Mastercard, Visa and American Express, ABC News reports.

The regulator explained that the changes are in the public interest and are intended to make the payment system more transparent and easier to understand for businesses and customers. At the same time, the fees that businesses pay for card transactions have not been abolished.

Venues review their menus

Sydney café owner Philip Barbaro said that his group spends about $150,000 a year on such fees. According to him, the company has not raised the price of coffee in the city’s competitive environment, but has increased the prices of some other menu items to offset the costs.

Jamaican Patty Bakehouse owner Chris Skuse is covering the fees himself for now. However, he said he may raise prices in the new year. The entrepreneur noted that most visitors prefer to pay by card, while handling cash creates additional inconvenience.

More current news is available on the UA.News Telegram channel Telegram.

Possible cash discounts

Business Sydney chief executive Paul Nicolaou said businesses are already under pressure from rising interest rates, energy costs and reduced discretionary household spending. In his view, businesses need to cover their costs, so the result may be higher prices for consumers.

The Australian Competition and Consumer Commission stressed that businesses may include the fee in the overall price of a product, but must not mislead customers about the cost or the reasons for its change. Companies are also allowed to offer discounts to those who choose a particular payment method, including cash or PayID. The terms of such a discount must be clearly communicated before ordering or payment, and the discounted price must not be the only price displayed or more prominent than the full price.

Barbaro is considering offering a discount to customers who pay in cash. Skuse, in turn, does not plan to introduce such a practice.

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