Australia’s card surcharge ban forces cafes, shops into price increases

Starting on Thursday, Australia is implementing a ban on credit card surcharge fees, a regulatory change that is forcing cafes and shops across the country to adjust their pricing structures. Melbourne business owners, such as Lennox Street Deli co-owner Ross Surace, are responding to the elimination of these fees by raising their menu prices to cover operational costs previously offset by surcharges.

Specifically, Surace is preparing to increase the price of a coffee by 50 Australian cents and a panini by A$1 (US$0.70) in the Moonee Ponds neighbourhood. The adjustments highlight the broader financial impact of the incoming policy on small businesses that previously relied on bank-imposed card fees to manage transaction expenses.