Card surcharges are gone

Ever put something in your cart, got to the checkout and watched the total jump up in front of your eyes? Well, the RBA has just put a stop to that. 

But there's more going on behind the scenes than just a fee disappearing. 

What's actually changed 💳

From October 1st the Reserve Bank banned surcharges for consumers on transactions across debit, credit and prepaid cards on eftpos, Mastercard and Visa alike. Considering Australians currently pay around $1.6 billion a year in card surcharges, that could mean big savings. 

The RBA’s also cut the interchange fee limit. That’s the fee banks charge each other on card payments, which helps fund a lot of reward points programs.

The catch 🧾

The savings at the checkout are real for consumers, but some businesses may build the costs that they will continue to pay into their prices instead of itemising it as a surcharge. Some banks are already responding on their end too, increasing credit card annual fees and slashing rewards.

Where the real saving might be 🔍

With a cashback credit card you can stack the savings. No surcharge pushing up the total price at the checkout and some of what you spend back in your pocket as cashback.

💡 Tip: The big purchases you used to avoid paying by card to dodge the surcharge (like rent or school fees) are now where cashback adds up the fastest. No surcharges allowed.