A Melbourne bakery has inadvertently created the perfect metaphor for how Australians feel about card surcharges—and frankly, it's not a recipe anyone wants to try.
A keen-eyed shopper visiting Bakers Delight recently spotted something that would make any customer do a double-take.
There, positioned prominently at the counter, sat a cheerful sign declaring 'We think you'll love this... Try something new' - with an arrow pointing directly at a card surcharge notice.
Whether it was accidental placement or someone's idea of retail humour, the unfortunate signage has struck a nerve with Australians who are increasingly fed up with being slugged extra fees just for paying with plastic.
The accidental comedy gold
The social media user who shared the photo didn't hold back with their commentary: 'Thank you, Bakers. Very cool.' The sarcasm was palpable, and fellow Australians were quick to pile on with their own observations.
'That's not really something new tho Bakers,' one commenter quipped, while another added, 'Uhm, I don't think that's new...' The general sentiment was clear—card surcharges are about as welcome as a soggy meat pie, and certainly nothing to get excited about trying.
'Surcharging is no longer achieving its intended purpose of steering consumers to make more efficient payment choices'
But beyond the giggles, the incident has highlighted something much more serious: cash now accounts for just 13 per cent of in-person transactions, and when there's no real alternative, a surcharge becomes less a useful price signal and more a penalty for convenience.
The great surcharge debate
The responses to the post revealed the deep divide in how Australians view these fees. While some saw the humour in the bakery's blunder, others used it as a launching pad to vent their frustrations about surcharges in general.
One small business owner offered their perspective: 'I own a small business. 90 per cent of our transactions are by card now.
Card processing fees and the time it takes to cash to the bank are just a cost of doing business, so those expenses are incorporated into the pricing.'
This comment sparked a broader discussion about whether surcharges should exist at all. 'Am I wrong thinking that there is no need for surcharges?' another person asked, echoing a sentiment shared by many Australians who feel they're being nickel-and-dimed at every turn.
Understanding current surcharge rules
Under Australian law, businesses can only charge what it actually costs them to process your payment.
Costs typically range from 0.5 per cent to 1.5 per cent or most cards.
However, American Express credit cards are exempt from the ban on excessive surcharges, which is why you might see higher fees for Amex payments.
Why everyone's talking about surcharges now
The timing of this bakery blunder couldn't be more perfect. Consumers currently pay around $1.2 billion in card surcharges each year, but relief is finally on the horizon.
Source: Standard_Mango_7659 / Reddit.
The Reserve Bank of Australia has proposed removing surcharging on EFTPOS, Mastercard and Visa cards from July 2026. This isn't just tinkering around the edges—it's a complete overhaul of how we pay for things.
The reason for this dramatic shift is simple: the payments ecosystem has changed dramatically since the early 2000s, and imposing fees and surcharges on credit and debit cards no longer works in a predominantly cashless society.
What this means for your wallet
Here's where it gets interesting for anyone who's tired of these sneaky fees. About 90 per cent of small businesses don't currently surcharge and would gain around $185 million in net benefits from the proposed reforms.
For consumers, the benefits are even clearer. They'll avoid surprise fees at checkout, won't need to switch payment methods to dodge surcharges, and won't have to report excessive fees to the Australian Consumer and Competition Commission.
Combined with lower interchange fees, this means consumers should face less friction and more predictable pricing.
What the surcharge ban means for you
- No more surprise fees when paying with EFTPOS, Visa, or Mastercard
- Estimated savings of $1.2 billion annually for all consumers combined
- Changes expected to take effect from July 2026
- About 90 per cent of Australian businesses will be better off under the new system
Government action is already starting
You don't have to wait until 2026 for some relief. From 1 January 2025, the government stopped surcharges on debit card payments for frontline government services at the Australian Taxation Office and Services Australia.
The Government has announced $2.1 million of new funding for the Australian Competition and Consumer Commission to tackle excessive surcharges, taking immediate action on excessive surcharging to save people money. This funding will enable the consumer watchdog to crack down on illegal and unfair surcharging practices.
How to dodge surcharges until then
While we wait for these reforms to kick in, there are still ways to avoid getting stung by surcharge fees:
- Pay with cash where possible - Though with only 13 per cent of transactions now being cash, this isn't always practical
- Look for businesses that don't surcharge - Many large retailers, like the big supermarkets, don't charge card fees at all [15]
- Insert your card instead of tapping - Some businesses charge different rates for different payment methods
- Ask about surcharge-free options - Businesses that surcharge usually offer at least one fee-free payment method
The bigger picture
What makes the Bakers Delight sign so perfectly ridiculous is that it accidentally captures how many businesses seem to view surcharges—as just another product to sell you.
But with fewer people using cash these days and businesses increasingly charging the same surcharge rate across debit and credit cards, surcharges have become hard to avoid, while the interchange fees paid by businesses to card providers are too high, especially for small businesses.
The good news is that change is coming, and it's significant. Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies, with proposals that could save businesses around $1.2 billion in interchange fees a year.
Did you know?
Did you know?
According to Reserve Bank data, American Express card surcharges average around 1.33 per cent per transaction, with the Australian Taxation Office charging a 1.45 per cent Amex surcharge [19] - which explains why Amex fees are often higher than other cards.
So while that Bakers Delight sign might have given us all a good laugh (or a good grumble), it's also a reminder that we're living through the final chapter of the surcharge era. By mid-2026, that unfortunate piece of signage might be nothing more than a quaint reminder of the days when paying with your own money cost you extra.
Have you spotted any hilariously unfortunate store signage lately, or do you have your own surcharge horror stories to share? We'd love to hear about your experiences in the comments below.
Original Article
https://www.kidspot.com.au/lifestyl...e/news-story/fdb7f4c5737eb0b120eadaa1e32f446f
No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet
Cited text: Cash now accounts for just 13 per cent of in-person transactions, and the shift to contactless payments, accelerated by the pandemic, has made cards the defau...
Excerpt: cash now accounts for just 13 per cent of in-person transactions, and when there's no real alternative, a surcharge becomes less a useful price signal and more a penalty for convenience
https://theconversation.com/no-more...-proposed-changes-mean-for-your-wallet-261165
Credit card surcharges in Australia | Finder
Cited text: Costs typically range from 0.5 per cent to 1.5 per cent.
Excerpt: Costs typically range from 0.5 per cent to 1.5 per cent
https://www.finder.com.au/credit-cards/credit-card-surcharges
Credit card surcharges in Australia | Finder
Cited text: American Express credit cards are exempt from the ban on excessive surcharges (as are BPAY and PayPal payments).
Excerpt: American Express credit cards are exempt from the ban on excessive surcharges
https://www.finder.com.au/credit-cards/credit-card-surcharges
Review of Merchant Card Payment Costs and Surcharging | Media Releases | RBA
Cited text: Consumers currently pay around $1.2 billion in card surcharges each year.
Excerpt: Consumers currently pay around $1.2 billion in card surcharges each year
https://www.rba.gov.au/media-releases/2025/mr-25-19.html
In Brief: Merchant Card Payment Costs and Surcharging—July 2025 | RBA
Cited text: Removing surcharging across debit and credit cards could save consumers a total of $1.2 billion each year.
Excerpt: Consumers currently pay around $1.2 billion in card surcharges each year
https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2025-07/
Credit Card Surcharges in Australia in 2025 | Canstar
Cited text: In it, the central bank proposed implementing a ban on Eftpos, Mastercard and Visa card surcharges from July 2026, as well as reducing interchange fee...
Excerpt: The Reserve Bank of Australia has proposed removing surcharging on EFTPOS, Mastercard and Visa cards from July 2026
https://www.canstar.com.au/credit-cards/credit-card-surcharges/
Review of Merchant Card Payment Costs and Surcharging | Media Releases | RBA
Cited text: The Payments System Board has reached the preliminary view that it would be in the public interest to: remove surcharging on eftpos, Mastercard and Vi...
Excerpt: The Reserve Bank of Australia has proposed removing surcharging on EFTPOS, Mastercard and Visa cards from July 2026
https://www.rba.gov.au/media-releases/2025/mr-25-19.html
No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet
Cited text: But fast-forward to 2025, and the payments ecosystem has changed dramatically.
Excerpt: the payments ecosystem has changed dramatically since the early 2000s, and imposing fees and surcharges on credit and debit cards no longer works in a predominantly cashless society
https://theconversation.com/no-more...-proposed-changes-mean-for-your-wallet-261165
No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet
Cited text: Imposing fees and surcharges on credit and debit cards no longer works in a predominantly cashless society.
Excerpt: the payments ecosystem has changed dramatically since the early 2000s, and imposing fees and surcharges on credit and debit cards no longer works in a predominantly cashless society
https://theconversation.com/no-more...-proposed-changes-mean-for-your-wallet-261165
No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet
Cited text: About 90 per cent of small businesses don’t currently surcharge and would gain around $185 million in net benefits.
Excerpt: About 90 per cent of small businesses don't currently surcharge and would gain around $185 million in net benefits
https://theconversation.com/no-more...-proposed-changes-mean-for-your-wallet-261165
No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet
Cited text: Consumers stand to benefit most. They’ll avoid surprise fees at checkout, won’t need to switch payment methods to dodge surcharges, and won’t have to ...
Excerpt: They'll avoid surprise fees at checkout, won't need to switch payment methods to dodge surcharges, and won't have to report excessive fees to the Australian Consumer and Competition Commission.
https://theconversation.com/no-more...-proposed-changes-mean-for-your-wallet-261165
Debit card merchant service fees | Australian Taxation Office
Cited text: ... On 22 November 2024, the government announced from 1 January 2025 it will stop surcharges on debit card payments for frontline government services...
Excerpt: From 1 January 2025, the government stopped surcharges on debit card payments for frontline government services at the Australian Taxation Office and Services Australia
https://www.ato.gov.au/about-ato/ne...other-topics/debit-card-merchant-service-fees
Reducing card surcharges for Australians and small businesses | Prime Minister of Australia
Cited text: Today the Government is announcing $2.1 million of new funding for the Australian Competition and Consumer Commission (ACCC) to tackle excessive surch...
Excerpt: The Government has announced $2.1 million of new funding for the Australian Competition and Consumer Commission to tackle excessive surcharges, taking immediate action on excessive surcharging to save people money.
https://www.pm.gov.au/media/reducing-card-surcharges-australians-and-small-businesses
Reducing card surcharges for Australians and small businesses | Prime Minister of Australia
Cited text: While the RBA’s review is underway, we’re taking immediate action on excessive surcharging to save people money. This funding will enable the consumer...
Excerpt: The Government has announced $2.1 million of new funding for the Australian Competition and Consumer Commission to tackle excessive surcharges, taking immediate action on excessive surcharging to save people money.
https://www.pm.gov.au/media/reducing-card-surcharges-australians-and-small-businesses
Credit card surcharges in Australia | Finder
Cited text: Many large retailers, like the big supermarkets, don't charge card fees at all.
Excerpt: Many large retailers, like the big supermarkets, don't charge card fees at all
https://www.finder.com.au/credit-cards/credit-card-surcharges
In Brief: Merchant Card Payment Costs and Surcharging—July 2025 | RBA
Cited text: Fewer people use cash these days and businesses are increasingly charging the same surcharge rate across debit and credit cards—making surcharges ha...
Excerpt: with fewer people using cash these days and businesses increasingly charging the same surcharge rate across debit and credit cards, surcharges have become hard to avoid, while the interchange fees paid by businesses to card providers are…
https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2025-07/
Review of Merchant Card Payment Costs and Surcharging | Media Releases | RBA
Cited text: Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies.
Excerpt: Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies, with proposals that could save businesses around $1.2 billion in interchange fees a year
https://www.rba.gov.au/media-releases/2025/mr-25-19.html
In Brief: Merchant Card Payment Costs and Surcharging—July 2025 | RBA
Cited text: Our proposals could save businesses around $1.2 billion in interchange fees a year and make 90 per cent of businesses better off.
Excerpt: Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies, with proposals that could save businesses around $1.2 billion in interchange fees a year
https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2025-07/
Credit card surcharges in Australia | Finder
Cited text: According to data from the Reserve Bank of Australia, Amex card surcharges average around 1.33 per cent per transaction. The ATO has a an Amex card surcharge ...
Excerpt: According to Reserve Bank data, American Express card surcharges average around 1.33 per cent per transaction, with the Australian Taxation Office charging a 1.45 per cent Amex surcharge
https://www.finder.com.au/credit-cards/credit-card-surcharges
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