Labor backflips on card surcharges, says big banks should pay not small businesses

A Labor minister has told Sunrise that the big banks should stump up the cost for processing card payments rather than businesses.

The Reserve Bank of Australia (RBA), under pressure from the Albanese government, recently banned businesses from being able to charge customers surcharges for using bank cards.

WATCH THE VIDEO ABOVE: Small businesses revolt against government policies

That’s left businesses to stump the costs for card payment terminals and machines. The RBA estimates Australians were paying around $1.6 billion a year in card surcharges before the changes.

After a sharp backlash from business, Labor now appears to be changing its tune.

“The RBA made the right decision to ban card surcharging, it costs customers about $1.6bn a year, but they should have taken the next step and banned charging at the point of sale for small businesses,” Kristy McBain told Sunrise on Monday morning.

“These are banks making billions of dollars in profits every year, small businesses are already paying account keeping fees.

“That’s what I’d like to see, the RBA actually take the next step and say there is no charging for those point of sale machines.”

Should’ve thought about that earlier, says Joyce

One Nation MP, Barnaby Joyce, hit back at McBain saying the Albanese Government should have thought about unintended consequences before pressuring the RBA to ban surcharge payments.

“There are two things wrong with this, they should have thought about that at the start and done it,” Barnaby Joyce told Sunrise.

“We have the Minister out now saying this is what we should have done - um wow.

“We have record insolvencies in small business, record insolvencies, the Government is unfortunately running a country when they have never run a business.”

Small business campaign hits billboards and TVs

The change of messaging from the Government comes as small businesses launch a media campaign against the policy.

It includes tv ads and billboards outside Canberra Airport, and has been designed to coincide with the return of Federal Parliament.

The message to the Government from tax agent Belinda Raso and mortgage broker Joseph Daoud is: “Stop putting a surcharge on running a small business.”

Raso said the campaign was about far more than one decision.

“This isn’t just about the ATO’s credit card ban. It’s about every surcharge this Government keeps putting on running a small business,” Raso said.

“The card surcharge ban, the red tape, the rule changes that land with no warning. This Government seems hellbent on making it as hard as possible to run a small business, and we’ve had enough.”

Daoud said he had been inundated by small business owners since the surcharge ban began.

“I had hundreds of small business owners reach out to me to help them get their concerns out on this new surcharge ban,” Daoud said.

“I couldn’t stand by and let more ambitious Australians feel helpless, so I helped them organise some media behind it all.”

The Reserve Bank has the final call on who pays for card payment fees.