Australia payment reforms trigger price hikes and cash discounts

New Australian payment reforms, effective October 1, prohibit businesses from applying surcharges to most card transactions. While intended to benefit consumers, the ban has prompted concerns among hospitality and retail sectors that the costs of electronic payment processing will instead be absorbed by venues or passed on through higher base prices for goods and services.

In the hospitality sector, pubs and clubs face pressure to manage rising operational costs alongside these new regulations. Some QR code ordering platforms have also introduced new customer fees. Meanwhile, in the retail sector, Forrest Beach Supermarket in Queensland has implemented a 2% discount for cash transactions to mitigate merchant fees. This initiative has reportedly led to a 30% increase in cash usage at the store, despite the business losing a small margin on each discounted cash sale.