The Reserve Bank of Australia proposed the move this week, claiming it would save consumers $1.2 billion annually.
However, some small businesses have expressed scepticism about the potential savings and the impact on their operations.
“The Reserve Bank’s proposal to remove card surcharges is deeply disappointing,” said Dean Long, Australian Travel Industry Association CEO.
“While the intent may be to benefit consumers, the reality is it will leave them worse off.
“Without equalisation of interchange fees and unfair scheme rules before implementation, many businesses won’t be able to absorb the costs and will be forced to reduce services or increase prices elsewhere where they can.”
The RBA’s proposal follows a review indicating that the current surcharge system is outdated, with retailers applying blanket surcharges regardless of card type.
“The risk is clear: consumers will face significantly diminished value and flexibility when using their cards,” added Mr Long.
“This change must not proceed without comprehensive reform to ensure fairness for businesses and choice for Australians. Nobody wants a situation where credit cards are no longer accepted.”
