Australia's Reserve Bank ban on card surcharges takes effect October, but the policy may backfire. While consumers avoid explicit fees, small businesses will embed costs into prices, potentially fueling inflation the RBA is trying to control. Industry experts warn a ten dollar coffee could jump to eleven dollars as restaurants and cafes absorb payment processing costs. The move discriminates against small business while entrenching advantages for major banks. Treasurer Jim Chalmers' October threat to legislate the ban raises questions about central bank independence. The RBA claims consumers will save 1.6 billion dollars, but economists argue transparent surcharges were preferable to hidden price increases across the economy.
