The Australian Hotels Association (AHA) says the Reserve Bank of Australia (RBA) must do more to help consumers and small business and that its second consultation paper on ‘Merchant Card Payment Costs and Surcharging’ does not go far enough.
The RBA released its consultation paper yesterday as part of its review of Merchant Card Payment Costs and Surcharging.
In its statement on the consultation paper the RBA said: “The Payments Systems Board has reached the preliminary view that it would be in the public interest to: remove surcharging on eftpos, Mastercard and Visa cards; lower the cap on interchange fees paid by business, and require card networks and large acquirers to publish the fees they charge.”
However, Australian Hotels Association CEO Stephen Ferguson said the RBA should be doing more help help millions of Australians with cost-of-living issues – as well as small business owners with livelihoods on the line.
“The RBA policy to ban surcharges just covers up the problem, when more sunlight on this massive $6.4bn cost is needed,” Ferguson said.
“The RBA needs to answer one simple question – if the debit card processing cost on a cup of coffee today is 1.6 per cent, how much will that 1.6 per cent come down under their new rules?
“Answer? It won’t come down in a meaningful way for small business because the RBA is not prepared to take stronger action on scheme fees or blended rates which are at the heart of the problem.
“To put it bluntly, it’s a political fix – not a solution.”
The RBA said it is inviting feedback on its proposed policy options and draft standards by 26 August 2025, and will use that feedback to finalise reforms that it says are “in the public interest in line with its objectives of a safe, competitive and efficient payments system”.
You can find the consultation paper, and details on how to provide your feedback on the Reserve Bank of Australia website.