In an age where convenience often trumps tradition, the shift towards cashless transactions has been both a blessing and a curse. While the ease of tapping a card has streamlined the shopping experience, it has also opened the door to a new kind of financial frustration for many Australians, particularly those who may remember a time when cash was king.
The latest uproar comes from Sydney’s ENGIE Stadium, nestled in the heart of Olympic Park, which has been thrust into the spotlight for its ‘compulsory’ card surcharge.
The controversy ignited when a patron took to the internet to voice their dismay over the venue’s bar menu, which clearly stated that a ‘0.75 per cent surcharge applies to all transactions’ due to its card-only policy.
This seemingly small surcharge has significant implications. For instance, a simple purchase like a $5.50 bottle of water suddenly incurs an additional cost, bringing the total to $5.54—a mandatory fee ‘no matter how you pay.’ It’s a subtle pinch on the wallet that, when multiplied by the thousands of transactions that occur, contributes to a staggering $960 million hit to Australian consumers annually.
The Australian Competition and Consumer Commission (ACCC) has weighed in, confirming that while such surcharges are not illegal, they must be justifiable and transparent. Businesses can charge a surcharge for card payments, but it must not exceed the cost of the transaction.
Moreover, the ACCC insists that businesses ‘must include the minimum surcharge in the displayed price’ if no cash payment option is available, and they must be upfront about any higher surcharge amounts for different payment methods.
ENGIE Stadium defends its policy, stating that the surcharge is in line with their interpretation of ACCC guidelines: ‘Accepting card only increases the speed of transaction in an environment where speed of service is essential to customer satisfaction.’
However, this rationale does little to soothe the irritation felt by many patrons who argue that the cost of doing business should be integrated into the price of products, not tacked on as an extra fee.
‘We just want the price to be the price and stop being stung with surcharges. I don’t care if the price of everything goes up a little. That’s how it has always worked. The cost of doing business is integrated into the costs of the product,’ said one person.
Another one remarked, ‘If you don’t accept cash then you are simply charging extra. Factor it into your prices.’
The Reserve Bank of Australia (RBA) has provided some insight into the costs associated with different card payments, estimating that the average cost for accepting EFTPOS payments is less than 0.5 per cent, while Visa and Mastercard debit transactions range between 0.5 and 1 per cent, and credit transactions are between 1 and 1.5 per cent.
These figures suggest that some businesses might be overcharging their customers under the guise of covering transaction costs.
The sentiment among many Australians, especially those who have witnessed the evolution of the marketplace, is clear: they would prefer to see prices rise slightly to cover transaction costs rather than be blindsided by surcharges. This preference for transparency and simplicity is rooted in a desire for fairness.
In response to the growing discontent and the significant financial impact of card surcharges, the government is considering a ban on debit card surcharges to curb excessive fees, with a potential implementation date of January 2026. Meanwhile, the ACCC is cracking down on businesses that fail to comply with card surcharge laws, ensuring that consumers are not unfairly charged.
As you navigate this cashless landscape, it’s crucial to stay informed about the hidden costs that may be lurking in your transactions. For our readers at YourLifeChoices, we encourage you to scrutinise your receipts and question charges that don’t seem right.
If you’ve encountered similar surcharge issues or have thoughts on the cashless trend, we invite you to share your experiences in the comments below.
Also read: Sneaky card surcharges exposed: What this means for businesses and consumers
Surcharges should be built into the price not a tacked on extra. If card only surcharges shouldn’t be allowed as no alternative.
These establishments are ripping of customers, period. The say it’s more convenient, safer and quicker than cash. Of that’s so then productivity is up which should mean lower prices and higher wages for staff.
The federal government really need to legislate to ban surcharges were it starts, the banks.
There should be 2 prices. 1. fee included in the price for using a card and 2. a lower price for using CASH. All establishments should accept cash, not just a card transaction.
Try the new monthly charges by Latitude. They have been charging me over $1
I do not no what happened! I have a nil balance. Yesterdays email update stated they can close your account if you do not use it in 2 years. I gave had a terminal illness diagnosed in early 2023 so cut back on purchases until I no the outcome of treatnent. No empathy at all still charging it! Sick!
The banking cartels have got serious hide, charging card transaction fees, which retailers necessarily pass on to consumers. The ‘cost’ of the transactions, spread over the millions effected every day is negligible, but the banks hype them up making them seem insurmountable. As if they are not already making an absolute killing towards their obscene profits from interest charged. Don’t forget, also, the inordinate amount of time they hold onto your money so supposedly ‘clear’ large transactions like real-estate purchases, during which time they are surely cashing in on it while it is neither yours or the other party’s. So much for modern electronic transfers which ought to take ‘the blink of an eye’. Closing down every other branch, it’s almost like they are telling us they really don’t want customers – why should we be paying a card transaction fee.