Retailers have welcomed a plan by the Federal Government to cut greedy debit card fees set by financial institutions, in a move that will save customers up to an estimated $4 billion in unnecessary surcharges each year.
Australian Association of Convenience Stores (AACS) CEO Theo Foukkare said cutting fees would save Australians much needed money and stop retailers from being blamed for a cash grab driven by the banks.
Any ban on surcharging would only be supported if the relevant reform to the payments system is implemented to slash card fees levied on retailers.
“Retailers have seen their merchant fees explode over the last few years, while the profits of the big banks have continued to balloon.
“While major retailers like Coles and Woolworths don’t apply surcharges because they are on strategic rates with the banks, small businesses are often forced to pass on the cost of the electronic payment system to shoppers just to keep their head above water,” Mr Foukkare said.
“As a minimum, we are calling for a government mandate on Least Cost Routing and for debit fees to be separated from credit fees,” Mr Foukkare said.
“AACS welcomes Treasurer Jim Chalmers and Prime Minister Anthony Albanese announcement, which has seen our retailers being blamed for a surcharge that they never wanted and have never benefited from.” he said.
“This is well overdue and something our members have been concerned by for many years.
“For too long, the big banks and overseas payments providers have continued to benefit from their complicated and confusing fees that they charge businesses – they quite literally take hard earned money from cash-strapped Aussies in a cost-of-living crisis for doing nothing.
“Retailers have been demonised for these surcharges – with the banks and overseas payment providers pedalling a false narrative that shopkeepers pocket the cash, when it’s simply not true.
They are simply passing on their bank fees.
“Aussies and retailers are fed up with this farce and it is clear the Albanese Government is too – that’s why this plan is so important.” he said.
Mr Foukkare urged the Federal Government to go further with its planned ban and called on the Reserve Bank of Australia (RBA) to introduce urgent reforms that overhaul the current payments system so that small businesses can compete on an even playing field with large businesses.
“We need to see strong leadership from the Federal Government to take decisive action and not wait for the reluctant RBA and instead bring enact its plan now, rather than in 2026.
“Australia is in the throws of a cost of living crisis and a cost of doing business crisis, we can’t wait until January 2026 for these changes to be implemented – we need action now.
Theo Foukkare is available for interview on 0423 003 133
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