Card surcharge ban used as ‘cover’ for larger price increases by Australian businesses, experts say
Australian businesses are reportedly using the recent ban on credit card surcharges as a pretext to implement larger price increases. Economists suggest that businesses are leveraging high inflation and consumer tolerance to pass on broader costs under the guise of the new regulatory change.
Why it matters
This demonstrates how regulatory shifts intended to benefit consumers can be exploited by businesses to mask price hikes, complicating efforts to manage inflation and market transparency.
One online price tracker found 17% of cafes have increased coffee prices since the credit card surcharge ban began, with an average increase of more than 10%. One online price tracker found 17% of cafes have increased coffee prices since the credit card surcharge ban began, with an average increase of more than 10%. Business Card surcharge ban used as ‘cover’ for larger price increases by Australian businesses, experts say ‘Round-up’ pricing in items such as coffee suggests increases are exceeding the typical 1.5% surcharge fee
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Prefer the Guardian on Google Businesses are using the recent ban on credit card surcharges as “cover” to pass along much larger price increases to customers, experts say, as cafes and restaurants struggle to cope with climbing costs and rising interest rates.
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