Cash still counts: What the surcharge ban means for Australians

Australia’s recent ban on debit and credit card surcharges marks a significant change in the way Australians pay for everyday purchases. While many consumers welcome the end of extra fees at the checkout, the reform is unlikely to remove the costs of accepting card payments altogether. Instead, it may reshape how businesses set prices and how consumers choose to pay.

The changes highlight an important reality: cash still plays a valuable role in the Australian economy, particularly for older Australians, people managing household budgets, and communities where digital payments are not always reliable.

How businesses may respond

While surcharges have disappeared from receipts, the costs of processing card payments remain. Businesses continue to pay fees when customers use electronic payment methods, and many are already adjusting their pricing strategies to manage these expenses.

Some businesses are absorbing the additional costs, while others are increasing prices across products and services to help offset them. Even modest price increases can affect all customers, regardless of how they choose to pay.

Many businesses are also encouraging customers to use lower-cost payment methods with incentives such as such as offering discounts to customers who pay with cash or PayID.

The Reserve Bank of Australia notes that businesses can encourage preferred payment methods through discounts. As a result, cash discounts may become an increasingly common way for businesses to reduce payment costs while offering value to customers.

Cash use is holding firm

Despite the rise of digital payments, cash remains an important part of everyday life for many Australians. Recent payments data shows cash use has edged up from post-pandemic lows, with around half of Australians still using cash at least weekly.

For many people, cash offers a simple way to manage spending, while others value its reliability when internet or payment networks are unavailable. This is particularly important in regional communities and during outages.

Older Australians continue to be among the nation’s most frequent cash users. Many appreciate the certainty and control that cash provides, making it easier to budget and maintain financial independence. As Australia’s population ages, ensuring continued access to cash remains an important part of keeping everyone connected to the financial system.

Can businesses offer cash discounts?

Yes.

While businesses can no longer charge card surcharges, they can still offer discounts for customers who choose to pay using particular methods, including cash or PayID.

The Australian Competition and Consumer Commission (ACCC) allows businesses to offer discounts based on payment method, provided they comply with Australian Consumer Law. The standard, undiscounted price must be clearly displayed, and any discount must be communicated clearly and accurately before payment to avoid causing confusion for customers.

For example, a retail store may offer a 5% discount to customers who pay in cash, provided the standard price is clearly displayed and the discount terms are communicated upfront.

As competition for customers continues, cash discounts could become a more common feature of the retail landscape.

What this means for consumers

The surcharge ban may save Australians money at the point of sale, but consumers should still be aware of how businesses adapt.

Some businesses may choose to increase prices across their products and services to recover payment processing costs. Others may introduce incentives that reward their customers for using lower-cost payment methods.

As a result, it may be worth asking whether a cash discount is available, particularly at small businesses. Even small savings can add up over time, especially for households looking to manage their everyday expenses more carefully.

More broadly, maintaining the option to pay with cash gives consumers greater choice. Whether it’s for budgeting, contingency planning or simply personal preference, cash continues to offer benefits that many Australians value.

Cash matters more than ever

As Australia enters a new chapter in payments, choice remains important. While card payments continue to dominate many transactions, cash remains a trusted, reliable and widely used form of payment.

Access to cash supports financial independence, budgeting and inclusion. And with businesses potentially introducing cash discounts in response to the surcharge ban, cash may become even more valuable in everyday spending.

That’s why maintaining access to cash remains so important. Through atmx’s network of more than 2,100 ATMs and with fee free partnerships with 25 financial institutions, Australians can continue to access the cash when they need it. Together with partners such as National Seniors Australia, atmx is committed to supporting convenient cash access and helping ensure all Australians can choose the payment method that works best for them.