Australia plans to reduce bank card fees to ease the burden on consumers and small businesses

Australia has announced plans to reduce bank card fees by eliminating transaction fees for debit cards, in response to the decline in cash usage in the country. The government stated that the central bank is currently reviewing merchant costs for card payments and, subject to this consultation, plans to ban debit card fees from 2026. An additional 2.1 million Australian dollars have been allocated to strengthen competitive oversight and combat excessive fees. Finance Minister Jim Chalmers emphasized the aim to create better conditions for consumers, reduce costs for small businesses, and promote a more competitive payment system. Consumers should not be penalized for using cards or digital payments, nor should small businesses have to pay high fees just to get paid. The Reserve Bank of Australia concluded in 2021 that merchants' right to surcharge promoted a more efficient and competitive payment system. Nevertheless, the topic remains a focus of public discussion due to rising living costs. Andrew Irvine, CEO of the National Australia Bank, described a 10% surcharge for a coffee in Sydney as "outrageous" in August. Statistics from the Australian Banking Association show that in 2022 only 13% of payments were made with cash, compared to 70% in 2007, and this share is expected to fall to just 4% by 2030.