If you’ve ever been stung by a mysterious ‘surcharge‘ at the checkout, you’re not alone and certainly not imagining things.
From your local café to the tax office, hidden fees have become a daily frustration for Australians, quietly nibbling away at our wallets. But could change finally be on the horizon?
Once upon a time, cash was king. In 2007, a whopping 70 per cent of all transactions in Australia were made with notes and coins. Fast-forward to today, and that figure has plummeted to just 13 per cent.
The rest? We’re tapping, swiping, and clicking our way through life, with debit and credit cards now accounting for 76 per cent of all payments and another 19 per cent happening online.
With this digital shift, surcharges have crept in and multiplied. What started as a way to discourage credit card use (and cover merchant fees) has ballooned into a billion-dollar industry, with Australians paying extra for everything from a flat white to their tax bill.
What are these surcharges, anyway?
Surcharges are extra fees tacked onto your bill when you pay by card, or sometimes just for daring to dine out on a weekend or public holiday.
The logic? Businesses say they cover card processing costs or higher staff wages on weekends. But as many of us have noticed, these fees can feel arbitrary, confusing, and a bit of a rort.
Take, for example, a sign spotted in a Melbourne food court: card surcharge, weekend surcharge, public holiday surcharge.
One social media user summed up the mood: ‘Don’t shop at any place that has a weekend/holiday surcharge. Just because the business is charging more, doesn’t mean that employees are getting paid properly.’
The push for transparency—and fairness
The Reserve Bank of Australia (RBA) is reviewing whether these card surcharges should be scrapped altogether.
The Albanese government has already signalled its intention to ‘crack down’ on unfair and excessive charges, and is prepared to ban debit card surcharges if the RBA gives the green light.
Professor Steve Worthington, a Swinburne University payment systems expert, calls for a simple, consumer-friendly solution: ‘The price that you see is the price that you pay.’
He pointed out that card surcharges are banned in Europe and the United Kingdom—payment processing is simply considered a cost of doing business, like rent or electricity.
‘Payments are one of the “costs of doing business”, just as power, water and premises, so why are payment costs not just incorporated into the price of all goods and services, just like all other costs?’ he asked.
One of the biggest gripes is the lack of transparency. Where does your surcharge go? Is it covering legitimate business costs, or just padding profits?
Even the Australian Taxation Office has been known to add card surcharges, leaving many of us scratching our heads.
Professor Worthington suspects that not all surcharges are passed on to staff, especially those weekend and public holiday extras.
‘I ask myself, “Does this 10 per cent surcharge, all of it, go to the staff who are working?” And I somehow think that’s not the case.’
The business perspective
What is up with the weekend surcharges in the Melbourne?!
by u/Ordinary_Prior_8993 in melbourne
Of course, it’s not all black and white. Many small businesses argue that surcharges are necessary to cover rising costs, especially as merchant fees (the price of processing card payments) can eat into already slim margins.
And yes, staff get paid more on weekends and public holidays—but as some social media users point out, those are often the busiest times, which can offset the extra wage bill.
Still, the question remains: should these costs be built into the price, or tacked on at the end? And is it fair for consumers to be left guessing their final bill?
Major banks, including the Commonwealth Bank, have joined the call for reform, urging the RBA to scrap debit and credit card surcharges in the name of transparency and fairness.
The government, too, wants to see lower costs for both businesses and customers.
As we await the RBA’s decision, one thing is clear: Australians are fed up with hidden fees. Whether buying a coffee, booking a holiday, or paying your tax, you deserve to know exactly what you’re paying for—and why.
Should businesses include all costs in their advertised prices? Or do you sympathise with small companies trying to stay afloat? Share your stories and opinions in the comments below—let’s get the conversation started!
Also read: Sneaky ‘security surcharge’ haunting female backpackers Down Under
Why weren’t these charges brought in in 1974, when Bankcard was first introduced?
Some eateries have ‘Mon-Fri’, ‘Sat & Sun’, and ‘Public Holiday’ menus.
As for me, I refuse to use card to pay for anything by card, so I never get charged any fees. It’s cash only for me. If an establishment doesn’t take cash, then they certainly won’t get my custom. The only exception being that they don’t have a surcharge for accepting card only.