Sydney small businesses push for cash following card surcharge ban

Small business owners in Sydney are responding to a new ban on card surcharges by encouraging cash payments and implementing minimum spend requirements for electronic transactions. The Reserve Bank of Australia implemented the ban on October 1, citing the “public interest” and an expected consumer saving of $1.6 billion annually. Prime Minister Anthony Albanese suggested the move could lower costs for everyday items like coffee.

However, business owners report significant financial strain. Gabriele Franco, owner of the Italian trattoria La Botte D’Oro, estimates potential losses between $12,000 and $16,000 by absorbing electronic payment costs. Similarly, Geoffrey Ji of Cranes Newsagency in Marrickville has introduced a $10 minimum spend for EFTPOS transactions.

Economists have warned that the policy could be inflationary, as businesses may raise general prices to recoup the costs of electronic payments. Business owners expressed concerns that these costs could also be passed down through supplier delivery charges, potentially threatening the viability of small enterprises already struggling with inflation.