Story perspectives

RBA surcharge ban starts as businesses raise prices

By Drooid · Oct 2, 2026, 5:58 AM UTC · How we work

Summary

Story summary

Australian businesses are raising prices as the Reserve Bank’s surcharge ban begins Thursday.
The RBA says consumers previously paid $1.6 billion a year in card surcharges.
The ban is expected to cut merchants’ processing costs by about $910 million annually.
Café owner Rob Strahan raised coffee price from $6 to $6.50 after absorbing $15,000 fees.

History

Historical Context

In July 2010 Congress enacted the Dodd-Frank Act, and Senator Dick Durbin’s amendment—approved 64-33—capped debit-card interchange fees. The Federal Reserve later reported that merchants saved billions annually, leading Visa and Mastercard to adjust pricing. Inspired by that precedent, the Reserve Bank of Australia now bans card surcharges, shifting cost pressure to consumers.

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Story summary

Australian businesses are raising prices as the Reserve Bank’s surcharge ban begins Thursday.
The RBA says consumers previously paid $1.6 billion a year in card surcharges.
The ban is expected to cut merchants’ processing costs by about $910 million annually.
Café owner Rob Strahan raised coffee price from $6 to $6.50 after absorbing $15,000 fees.

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