Australia hopes to abolish most bank card payment surcharges.

The Reserve Bank of Australia has proposed on Tuesday to eliminate most surcharges on debit and credit card payments for consumers, as well as reduce interchange fees for businesses, which could save these two groups approximately $2.4 billion annually. In a consultation paper regarding the proposal, the Australian central bank stated that surcharges and fees no longer serve the public interest and invited feedback from stakeholders by August 26th. The Reserve Bank of Australia believes that surcharges on debit and credit cards no longer achieve the intended goal of guiding consumers towards more efficient payment choices. With the decline in cash usage, avoiding surcharges has become more difficult, and enforcing current regulations also poses challenges. The central bank's Consumer Payment Survey conducted once every three years found that the proportion of consumers using cash for payments has decreased from about 70% in 2007 to 13% in 2022. The Reserve Bank of Australia stated, "Eliminating surcharges will make card payments simpler, more transparent, and help enhance competition in the card payment system."