Mastercard and Visa have issued a warning to the Reserve Bank of Australia over the Federal Government’s proposal to introduce a ban on card surcharges.
Card companies have warned they will stop refunding fraud victims if Australia imposes fee caps on these credit card companies.
The relevant card companies have made this statement with the federal government’s announcement that it will impose a complete ban on debit card surcharges from 2026.
According to the latest reports, Australian shoppers pay around $1.5 billion in debit and credit card surcharges each year.
Mastercard Australia’s president said protection for customers’ cards was not free and included payments to victims of fraud.
Visa’s Australia manager Alan Matchett said that if the Australian government imposes further regulations on the cards, it will limit the benefits for consumers.
Treasurer Jim Chalmers has previously said that card or digital payments should not cost consumers more, nor should small businesses have to pay higher fees.
The Federal Government is also to provide an extra $2.1 million in funding to the Australian Consumer Commission to crack down on excessive card surcharges.