<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Reserve Bank of Australia has announced an </span><a href="https://www.9news.com.au/national/reserve-bank-recommends-removing-card-fees-surcharges-in-new-report/b1946a2c-ea63-48bf-b1d4-676dc696f369" rel="" target="_blank" title="end to surcharges on bank card payments"><span>end to surcharges on bank card payments</span></a><span>, scrapping fees for millions of Aussies who don't use cash.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Card surcharges will be scrapped on October 1 and businesses will have to absorb the cost they used to pass on to customers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But the change could end up costing us more at cafes, restaurants and corner shops.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>FUEL CRISIS:</span></strong><span> </span><a href="https://www.9news.com.au/national/fuel-shortage-australia-when-will-petrol-prices-go-down-explained/79bd42b8-cb81-4def-abf3-d4f6fec80680" target="_blank"><strong><span>When will Australia's petrol prices go down after fuel excise halved?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That's because many businesses will hike prices in response to the surcharge changes according Fei Gao, a lecturer at the University of Sydney's Business School.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The surcharge is going to be embedded into and absorbed by the price of the goods," Gao told nine.com.au.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Hospitality and small businesses like cafes, restaurants and convenience stores will be hit hardest by card surcharges come October.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/rba-to-end-card-surcharges-restaurants-increase-prices/664c06f8-b2e5-4408-bf47-e508e41128a4" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Gao predicts some will hike prices early to try to manage new costs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"They want to adapt to the change sooner than others, so they will start to incorporate it earlier," Gao said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Regardless of when businesses increase prices, one thing remains the same: Aussies who still pay with cash will be worse off.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That's because price hikes will apply to all customers, not just those who pay by card.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>MONEY:</span></strong><span> </span><a href="https://www.9news.com.au/national/reserve-bank-recommends-removing-card-fees-surcharges-in-new-report/b1946a2c-ea63-48bf-b1d4-676dc696f369" target="_blank"><strong><span>RBA to end credit card surcharges as cash usage dwindles</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian Hotels Association chief executive Stephen Ferguson told nine.com.au Aussies who have remained loyal to cash are getting the short end of the stick.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He said the RBA's decision "doesn't pass the pub test" and will only hurt consumers and small business.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The costs that we have to pass on to consumers are too high," he told nine.com.au.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There needs to be proper safeguards to ensure that any benefit flows back through to small business, so that benefits can be passed to savings can be passed to consumers."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As well as scrapping card surcharges, the RBA will also reduce interchange caps for domestic card transactions on October 1 to lower businesses' costs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But Ferguson's worried small businesses will never actually see the benefits.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"What we saw in Canada when interchange was lowered was that the big payment providers simply pocketed that that money themselves," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There needs to be proper safeguards to ensure that any benefit flows back through to small business, so that benefits and savings can be passed to consumers."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/health-insurance-premiums-increase-april-1-cancel-downgrade-switch-providers/9df5ccf7-0654-48bd-b60d-1a8a082e648f" target="_blank"><strong><span>Why thousands of Aussies plan to cancel their health insurance</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Though the RBA's decision hasn't been popular with small businesses, Gao said there's a silver lining for consumers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Having card surcharges baked into the price of goods and services will make it easier for Aussies who pay by card to know what each purchase is going to cost them.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's not entirely a bad thing to customers, in terms of transparency."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>