The federal government has pledged to end surcharges on debit card payments, but Labor MPs and business advocates are pushing for a complete ban on all debit surcharges and a reduction in merchant fees. They argue the current system is unfair and broken, calling on the RBA to implement fee-free debit payments for all transactions.
The federal government has pledged to end surcharges on debit card payments but Labor MPs and business advocates are calling for a halt to all surcharges on all debit payments.The federal government has pledged to end surcharges on debit card payments but Labor MPs and business advocates are calling for a halt to all surcharges on all debit payments.
“Current costs are unfair and can no longer be justified … this points to a system that is unfair and broken and one that is ripe for reform,” the submission read.The prime minister, Anthony Albanese, and the treasurer, Jim Chalmers, in October announced plans to move on excessive card surcharging, as part of a string of consumer-focused reforms to aid cost-of-living pressures. Albanese said the government was “prepared to ban debit card surcharges, subject to further work by the RBA”.
“We believe that no debit-style payment method should cost consumers more when using digital payments, than they would with the non-digital alternative. Debit-style payments are the new cash, and should be treated accordingly,” they write. He said a ban on debit surcharges must be accompanied by cutting the fees charged to merchants and small businesses.
DEBIT CARD SURCHARGES CONSUMER RIGHTS MERCHANT FEES RBA PAYMENT SYSTEM
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