Cash advocate’s warning as government prepares to ban debit card surcharges [Video]

A pro-cash advocate has argued that a government plan to outlaw debit card surcharges will unfairly impact people who use cash to pay for goods and services.

Australian shoppers are collectively paying around $1.5 billion every year for debit and credit card surcharges, according to industry estimates.

The Albanese Government is expected to outline plans today to ban debit card surcharges and more funding for the competition watchdog to target businesses charging excessive fees, the Australian Financial Review reports.

Surcharges on debit cards could be banned under a federal government plan. (iStock)

Credit card surcharges will not be included in the move.

The Reserve Bank of Australia is also set to launch a review today of payment costs for retailers.

The ban could be introduced from the start of January 2026, subject to consultation with the RBA.

“Consumers shouldn’t be punished for using cards or digital payments, and at the …