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Card payment surcharges should be banned for debit and credit payments, RBA says
(www.theguardian.com)
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I don't think the problem is banks charging fees. In fact, I don't really have an issue with the banks taking 1% of the sale. The issue is that merchants don't realise that counting cash and taking it to the bank etc actually costs more than 1% anyway. Electronic payments are actually cheaper than all that, they already give you a total and handle the bank end.
I can think of a couple of places in Perth who have gone totally cashless. They only accept Eftpos/credit cards.