12/04/2024
Australians are paying an estimated $1 billion annually in hidden fees for using debit cards due to increased usage of EFTPOS machines and contactless payments.
The average Australian could be spending around $140 each year on these hidden fees, contributing to growing concerns about the shift towards a cashless society.
Consumer experts suggested that businesses are passing on the costs of bank fees to customers, especially for tap-and-go transactions, which are the most popular, but also the most expensive.
The Reserve Bank of Australia is considering enforcing a formal regulatory requirement if the take-up of least-cost routing for card payments does not reach 80 per cent by mid-year, to reduce costs for businesses and consumers.
I remember when Bankcard was introduced the banks and retailers assured detractors there would be NO EXTRA COSTS because the resulting savings and security in cash handling would offset business costs.
Since then the banks have strangled small business by increasing cost of transactions, limited access to cash and cost of cash handling has become prohibitive. This has lead to charges to the end user increasing profits for bothe the businesses who do not have the cash handling fees and to the banks who have increased number of transactions.
This shows how insincere the banks and big business are in their concern for their customers.