On 1 October the Reserve Bank introduced sweeping reforms that stop businesses from adding a surcharge to credit or debit card purchases. The changes are projected to save customers about $1.6 billion a year.

Under the new law businesses cannot pass the interchange fee onto shoppers. They must either absorb the cost themselves or find another way to cover it in their pricing.

Hairdresser Sheridan Shaw says she has had to raise prices and cannot offer cash discounts. "Being able to absorb that cost would be detrimental to our business currently," she explained, adding that the situation is "pretty scary" for her salon.

Restaurant owner Peter Papas has also increased menu prices. He worries that higher bills will drive some diners away, noting that "when people can't pay anymore, they stop showing up."

Andrew McKellar, chief executive of the Australian Chamber of Commerce and Industry, argues the reforms will not save small businesses money. He also slammed the ATO’s plan to ban credit‑card payments from 30 November, calling it a “staggering double standard.”

Simon Croft of the Housing Industry Association warns that the payment‑fee changes could become embedded in the cost of building materials. He says this risk adds pressure to housing affordability by raising overall construction prices.

For everyday shoppers the impact is clear: many will see higher prices for services, fewer cash‑discount options, and the possibility of limited payment methods if credit‑card bans are enforced. Small businesses, meanwhile, must balance tighter cash flow with the need to stay competitive.