This morning the AFR reports "Labor is preparing to outlaw debit card surcharges"
The proposal, as reported, will not ban card fees but simply hide them in the cost of goods and services, raising prices for everyone and squeezing small businesses.
Card surcharging at the retail point of sale is a Australian regulatory innovation stridently opposed by big banks, Visa and Mastercard because it is transparent and up-front.
Visa, Mastercard and the Australian big banks want a ban on card surcharging so their merchant service fees are hidden from consumers and charged to all Australians.
Without full, up-front disclosure of costs associated with payments can consumers make the best decision for their themselves.
Consumers understand that cash is surcharge-free and costs associated with card payments should be paid for by card users.
"A ban on card surcharging threatens to lumber all of us with additional hidden fees and charges," said Jason Bryce, founder of the Cash Welcome campaign.
"This proposed ban on debit card surcharging will not make debit card payments free, just hide the cost away from the consumer.
"Already EFTPOS companies are jacking up their fees to consumers and rewarding merchants with Qantas Frequent Flyer points, paid for by inflated card surcharges.
"Cash must be widely available and accepted to provide competitive pressure on fees at the retail point of sale.
"People who use cash should NOT have to pay the costs of premium platinum frequent flyer credit card users or any one else.
"A ban on card surcharging effectively means that costs are absorbed into all retail prices and paid for by all consumers, including people who pay with cash," said Jason Bryce.
"I don't want to pay the costs of your Qantas Frequent Flyer points rewards because you want to pay with an expensive credit card and I use cash for my shopping.
"All retail payments in Australia must be surcharge-free for cash and surcharged at a cost-recovery rate for all cashless payment methods.
"Right now cash users are subsidising the points rewards of platinum credit card users and the profits of banks and card schemes every time they pay at a merchant who absorbs their card acceptance costs into their prices and doesn't impose a card surcharge," said Jason Bryce.
Cash Welcome is a campaign to protect our right to choose how we pay, backed by donations from consumers, business and the cash industry. I have a petition that has attracted over 190,000 signatures:
https://www.change.org/SayNOtoCashlessAustralia
About us:
Jason Bryce
0428 777 727
jason@cashwelcome.org
Contact details:
Jason Bryce
Cash Welcome
0428 777 727
