Australians to Embrace Cash Payments as Surcharge Ban Nears

Australians are increasingly pledging to use cash for transactions as a ban on card surcharges takes effect next month, with some businesses signaling they will offer discounts to customers who opt for notes and coins. The Reserve Bank of Australia's (RBA) new regulations, set to be implemented on October 1, will prohibit businesses from adding extra charges for payments made via EFTPOS, Mastercard, Visa, and American Express.

While businesses are anticipated to adjust their pricing to absorb the costs previously passed on through surcharges, the Australian Competition and Consumer Commission (ACCC) permits them to offer discounts for alternative payment methods, such as cash or PayID. This allowance has spurred a renewed interest in cash among consumers.

"Cash is always king, yes, cash is king, always cash," one consumer stated, echoing sentiments from others who expressed their preference for using physical currency. "Love my cash," and "Always have and always will use cash," were among the sentiments shared.

James Bennett, founder of the advocacy group 'Cash is King,' anticipates a significant return to cash usage following the ban. "I think people will certainly be quite responsive to it, and we'll definitely see an increase in cash," he told nine.com.au. "We've seen a slow increase over the recent 12 to 18 months anyway, but I think we'll see a further increase come October."

Bennett also believes more businesses will begin to offer incentives for cash payments. "I hope it happens. I want to see more people using cash. Small businesses love cash, and I think we'll certainly see more signs up," he said.

Recent RBA data from April indicated a rise in cash usage, with it accounting for 15 percent of all transactions, and half of Australians using cash at least once a week. "There's so many people out there that fear losing cash and want to make sure it's still part of their everyday life," Bennett explained, referencing past instances like system outages where cash was the only viable payment method.

Swinburne University payment systems expert Professor Steve Worthington suggests the upcoming reforms could catalyze a broader shift in payment behaviors. "This could ultimately see businesses and consumers rethink how they pay," he commented. "This could be appealing to those businesses who already accept cash as a payment, and it could re-energize the demand for cash from consumers who are seeking to contain their cost of living."