The Australian Restaurant & Café Association (ARCA) has launched a national campaign urging the Reserve Bank of Australia (RBA) to rethink its proposed ban on debit and credit surcharges, warning it could drive up prices and devastate small hospitality businesses.
The campaign, titled “Let’s Get This Right, Not Rushed,” calls for the RBA to slow down and properly assess the implications of removing surcharges without fully understanding the impact on small operators. ARCA argues that while the change is being framed as a consumer win, it risks becoming a major blow to an already struggling sector.
“The original proposal to ban debit surcharges was already a burden—but the current proposals goes too far, too fast,” said ARCA CEO Wes Lambert. “If surcharges are banned, prices will simply rise across the board.”
ARCA says the RBA’s plan, set to take effect from 1 July 2026, would see 81 per cent of hospitality businesses that currently pass on surcharges take a direct hit to their profit and loss statements. Lambert warned that consumers could end up paying more overall, as restaurants and cafés would have little choice but to increase menu prices to offset higher payment processing costs.
“Don’t let the RBA take away your choice, or you’ll be left with a lot less than you think,” Lambert said, pointing to the irony of a policy that aims to cut costs but may instead spread them across all customers—including those who pay in cash.
Data from the Australian Bureau of Statistics shows that the cost of meals out and takeaway food rose 3.3 per cent year-on-year in August 2025, marking the strongest annual increase in the past year. ARCA says a blanket surcharge ban would worsen that inflation trend, forcing businesses to absorb or redistribute transaction costs through higher menu pricing.
“We urge the Government to encourage the RBA to slow down,” Lambert said. “We are calling on the RBA to pause the review so industry and payment providers can fully work through the consequences. Even the RBA Governor has acknowledged consumers ultimately pay—so where exactly will the $1.2 billion in ‘savings’ come from?”
Lambert added that despite the Government’s election promise, there is no need to rush, as it has at least two and a half years to deliver on that commitment. “Why rush, costing business their livelihoods and slugging all consumers, even those that pay cash, with a certain increase in already white-hot menu prices?”
ARCA’s campaign warns that a blanket ban would leave Australians with fewer choices and higher costs. Cash payers and low-cost debit users would lose the ability to avoid fees, while card costs could be hidden in higher menu prices. International experience, the group says, shows that where surcharges are banned, effective payment costs can rise above 2 per cent.
Lambert said the association’s message was clear: “Let’s get this right, not rushed.”
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