42
Is cash dead in Australia? (nord.pub)
submitted 1 week ago by to c/australia@aussie.zone
58 comments fedilink hide all child comments
 

I mean, since the last time I've visited: it seems like no one ever carries it. I prefer it because CC charge additional fees (which end up making the item cost more) I have a small rant about that: STOP RIPPING OFF PEOPLE WITH THOSE SURCHARGES?! (It should be 0 rather than 1%) as it may seem trivial, they add up overtime. Are stores allowed to refuse cash payments outright despite them being legal tender?

you are viewing a single comment's thread
view the rest of the comments
[–] 3 points 1 week ago (2 children)

Unfortunately the new legislation only stops unforwarding the charge directly, there is nothing to stop the banks and card companies charging the vendor. Prices will likely go up across the board and if you pay cash, you'll technically be paying part of everyone's card surcharge.

I suspect that any attempts to discount for cash will be quashed, if it's not already buried in there.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 3 points 1 week ago (1 child)

    Banks have always charged the vendor.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 1 week ago (2 children)

    Yes, I realise this, my point was that the cost doesn't disappear, it's just hidden

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 5 points 1 week ago* (1 child)

    Cash has a cost. It needs to be physically handled, counted, stored securely, moved in armed transport, and cash in all businesses is lost to theft every hour.

    Small business insists on cash not to avoid bank fees, but to avoid taxes. My barber's lifestyle does not match his income on paper.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 1 week ago

    Exactly, I'm not sure how people can't fathom how expensive it used to be to run everything on cash.

    The free cash cost of the past had factored into it, the 30 minutes of wage needed to clear the tills and check the balances, the bank fee that they get to process 5kg of shrapnel, armoured guards to move large sums of cash around, specialised training, firearms and custom vehicles. Cash was an industry, of which a small amount remains.

    Now the extra cents they slap on your card payment at the tap, that has always been bulshit. The price on the sticker being the amount you pay is a core tenant of this country, and I'm glad they are cracking down on it.

    I'm also strongly in favour of keeping the cash option there. Many many good reasons to have it around.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 2 points 1 week ago (1 child)

    You seem to be laboring under the misconception that people don't want to pay for things by card.

    Card payments are more convenient than cash.

    They rely on a network, which costs money. Yes, the fees exceed the cost, which allows the network provider to make a profit. However, if the profit was excessive there would be alternatives, and most Australian's will be invested in that payment network through their super anyway.

    In summary, consumers are enjoying convenience in exchange for a fee. You personally might find the fee unreasonable but you're the minority.

    You seem fixated on the idea that when paying with cash you will be burdened with the card fee even though you're not availing yourself of that service. I'm a self employed consultant. The vast majority of customers pay electronically, by bank transfer. A few times a year someone wants to pay with cash, so I have to make a special trip to the ATM to deposit it just for them. Handling cash has a non-trivial cost.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 1 point 1 week ago (1 child)

    No, I hate cash and love the convenience of card via phone. I just don't think it's fair that if someone chooses to pay via cash, or a lower surcharge card, etc, that they are burdened with the cost of every one else's choice. I'm happy to pay extra for what's convenient for me and I think this concept of card fees meaning you don't pay the "real cost" is idealogical nonsense, especially when you can get service fees, convenience fees, digital ticket fee, etc, etc. A good change would have been regulating reasonable costs by the bank.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 1 point 1 week ago (2 children)

    I suspect that any attempts to discount for cash will be quashed, if it’s not already buried in there.

    The no-surcharge rule in itself won't prevent discounts for cash:

    Can businesses offer discounts on other payment methods?

    Yes. Businesses can continue to offer discounts for particular payment methods. Businesses should consult their payment service provider and the ACCC guidance on appropriate pricing displays.

    Removing the RBA’s prohibition on ‘no-surcharge’ rules is not intended to prevent discounts being offered to consumers for using certain payment methods.

    From: https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/faqs/#can-businesses-offer-discounts-on-other-payment-methods

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 1 point 1 week ago

    Okay, though if this created a resurgence in the cash economy, I think the government would amend the legislation. A lot of companies might not want to deal with the cost/ risk of handling more cash.

    Mostly I expect that the highest card surcharge will become the new price and if there is a cash price, it will just be the current price at best. It really looks like it will just mean higher prices for all consumers and less versatility - the biggest rent payment platform owned by Macquarie bank has already stated they just won't accept cards any more.

  • permalink
  • fedilink
  • source
  • parent