The reserve bank announces this week that it has delayed its decision on payments surcharges.
The Reserve Bank has received 174 written submissions from consumers, small businesses, corporations, government entities, banks and the payments industry.
newsXpress members were represented in a comprehensive and professionally prepared submission.
A week ago, RBA governor Michele Bullock also noted the bank was “going to take the time to get these changes right”.
The bank also noted “To give due consideration to this substantial body of information and the policy implications, the RBA has decided to extend the time for concluding the Review of Merchant Card Payment Costs and Surcharging until March 2026,” .
Our view here at newsXpress is that a surcharging ban would be acceptable only if significant reforms were made to the whole system, eliminating the huge gap in costs between small and large businesses. We need to see the splitting of debit & credit card fees, removal of blended rates, and the implementation of dynamic least-cost routing from all payment providers.
This issue is a test for politicians of all sides. During election campaigns they say how important small businesses are to Australia. On this issue they can demonstrate actions to support their claimed position, they can lobby and call for arrangements to be put in place that support small businesses.
The current arrangements for card processing fees is unfair, placing a considerable burden on small businesses retailers and unfairly advantaging big businesses.
It is time for all politicians to be clear and loud about this, it is time for them to actively support small business retailers.
The surcharges themselves are a distraction from the core issue: small businesses being charged more per transaction than big business competitors even though the costs are the same to those providing payment services in small and big businesses.
The current arrangements are a tax against small businesses.
This delay to March 2026, while presented by the RBA as necessary for “getting it right,” unfortunately provides no immediate relief for the very small businesses being hurt by these inequities. It effectively locks in this unfair “tax” for a longer period, forcing independent retailers to continue subsidising the operations of their largest competitors and the profits of payment providers. This extension only heightens the urgency for political action.
Small businesses cannot afford to wait over a year for fairness, in fairness comes at all; they need politicians to intervene now and demand the structural reforms, like transparency and the removal of blended rates—that will level the playing field immediately.
newsXpress is a financial supporter of the Independent Payments Forum, a body made up of retail business representatives, a body working for equity and fairness for small businesses, local independent businesses. The work of the IPF is professional and backed by excellent quality research.
newsXpress is proud to support them.
