A Hobart hospitality owner says customers will end up paying more, whether they use cash or card, now that card surcharges have been banned.
Businesses can no longer add a surcharge to EFTPOS, Visa and Mastercard payments from today.
Alex Jovanovic, one of the owners of Berta in Hobart, said his cafe had charged a surcharge on credit card payments until now and would have to cover the bank fees itself.
He said his business like most others, would pass the extra cost on to customers, though the price rises would be “incremental”.
“We really don’t want to,” he said.
Jovanovic said inflation, interest rates, power bills and rates meant “businesses can’t just absorb it”.
“What’s gonna happen now is businesses are just gonna put all their prices up and it doesn’t matter if you pay cash or if you pay credit cards, you’re gonna end up paying more,” he said.
Prime Minister Anthony Albanese said “your morning coffee could be cheaper”. He said card surcharges were costing Australians $1.6 billion a year.
“The price you see will be the price you pay,” Albanese said.
Jovanovic said he would be “astonished” if any business lowered its price to then include the surcharge. He said “no one’s looking to decrease prices”.
He cited Australian Taxation Office figures, which he said showed 11% of hospitality businesses across the country had shut down or were shutting down.
“It’s not a case of greedy business owners,” he said.
Some venues are offering discounts to customers who pay with cash.
The Longley International Hotel said it would be raising some prices due but would give customers 2% off if they paid with cash.
“It’s not about trying to rort the system or get around the new rules. It’s simply about keeping cash alive,” the hotel said.
Jovanovic said Berta was discussing a cash discount but had not yet made a decision.
“We’re just trying to get through,” he said.
