CBA Calls for RBA to Abolish Card Fees Hitting Aussies $1 Billion Annually

Australians are paying the price for card payment convenience—nearly $1 billion every year, to be precise. These surcharges, applied to debit and credit card transactions, are deepening the cost-of-living pressures faced by families across the country.
In a bold move, the Commonwealth Bank of Australia (CBA) has urged the Reserve Bank of Australia (RBA) to outlaw these fees entirely for a fairer, more efficient system. Following models in Europe and the UK, where such fees have already been abolished, CBA believes that this step would simplify payment infrastructure and provide relief for consumers.
While the Albanese government is planning to eliminate surcharges on debit purchases by 2026, CBA warns that focusing only on debit transactions may lead to unintended consequences, leaving credit card users unprotected.
Why the Push to Ban Surcharges?
Card surcharge fees—additional amounts charged by businesses when consumers pay with cards instead of cash—range widely but often go unnoticed until after the transaction. According to a recent RBA report, the average cost of an eftpos transaction on a $100 purchase is 30p (0.3%), increasing to 0.5% for Visa and Mastercard debit cards, 0.9% for Visa and Mastercard credit cards, and 1.3% to 1.7% for American Express and Diners Club transactions.
The cumulative cost of these surcharges for Australians adds up to a staggering $960 million per year. The CBA argues that banning these fees outright would immediately address the lack of transparency that plagues consumers, prevent businesses from exploiting surcharge practices, and align Australia with international standards.
The Transparency and Enforcement Problem
One of the biggest issues surrounding surcharge practices is disclosure. Many Australians encounter the surcharge only after tapping their cards. Businesses often fail to implement the necessary standards for surcharge transparency, creating confusion for customers.
The CBA’s submission to the RBA highlights this issue, stating, “While surcharge disclosures are required, it is inconsistently executed and difficult to monitor. There are no standards for customer experience that feature an acceptance of the surcharge before the payment is cleared.”
The bank believes outlawing these fees entirely is the simplest and most effective solution to remove these disparities. Eliminating surcharges would also alleviate the burden of monitoring and enforcing compliance—a task that often proves challenging for consumer watchdogs.
The Government’s Plan
Recognising the challenges posed by card surcharges, the Albanese government has announced plans to phase out surcharge fees on debit card payments by 2026. This marks a significant step in reducing costs for Australians but falls short of addressing a larger issue.
CBA notes that limiting the ban to debit surcharges could result in businesses recouping their revenue losses by increasing fees for credit card payments. This would leave credit card users facing similar transparency and enforcement issues while possibly paying even higher charges.
“It would not provide relief for the above complexity in managing disclosure, customer experience or enforcement. For this reason, CBA urges the government to extend the ban to credit card transactions as well,” its submission reads.
Protecting Cash as a Payment Method
Another facet of the government’s efforts to ensure affordability is championing cash as a viable payment option. Recently, the Albanese administration launched a consultation paper proposing mandatory cash acceptance for essential item purchases.
This initiative acknowledges the role of cash as a lifeline for vulnerable Australians who rely on it for daily transactions. “Mandating cash for essential purchases means those who rely on cash will not be left behind,” Assistant Treasurer Stephen Jones explained.
Although this step would offer added financial flexibility to Australians, it remains separate from the growing push to eliminate card surcharges entirely.
The UK and European Model
Australia is not alone in grappling with this issue. The UK and European Union outlawed card surcharges years ago, offering a successful framework for Australia to emulate. Across these regions, transactions are more straightforward because businesses aren’t permitted to penalise customers for the chosen mode of payment.
The CBA highlights these international standards as proof that eliminating surcharges is not only feasible but also effective in simplifying transactions, promoting equity, and protecting consumers.
A Call to Action for Comprehensive Reform
The question isn’t simply whether Australia can afford these surcharges, but why they remain in effect when models for eliminating them already exist. By abolishing card fees across all payment types—not just debit cards—the RBA can provide greater financial relief to families, reduce complexity in compliance, and create an equal footing for all consumers.
As Australians continue to face economic challenges, actions like these have the potential to offer tangible benefits that ease everyday burdens. With $1 billion at stake annually, the case for reform has never been stronger.
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