When a Melbourne Reddit user spotted a sign at trendy croissant spot Lune declaring 'card payments only' alongside a 1.2 per cent credit card surcharge, their frustrated post struck a chord with fellow Australians.
'I basically see this as a sign that says 'don't come in', so I won't,' one commenter declared—a sentiment that will resonate with many seniors who increasingly find themselves shut out of businesses that have gone cashless.
The reality is that Lune, famous for its premium croissants and often lengthy queues at locations in Melbourne's CBD and Fitzroy, is perfectly within its legal rights. But for older Australians who prefer cash transactions, this trend represents a growing challenge in everyday life.
The legal truth about cashless businesses
Despite what many people assume, businesses can choose which payment types they accept, and it is legal for a business to specify terms and conditions for supplying goods and services, including whether they will accept cash payment. However, consumers must be made aware of these terms before they make a purchase.
The Australian Competition and Consumer Commission (ACCC) confirmed this position, stating there's no prohibition against businesses applying surcharges to electronic payments where they don't accept cash, provided the pricing is clear and not misleading.
'For many older Australians, cash is a cornerstone of financial independence, not just a payment tool'
Why this matters more for seniors
The shift away from cash isn't just inconvenient for older Australians—it's potentially exclusionary. According to COTA Australia, one in two Australians over 65 years and about 35 per cent of 50-65 year olds use cash on a regular basis.
These aren't just preferences—they're often practical necessities for people who may struggle with technology, prefer tangible money management, or have privacy and security concerns about digital transactions.
The numbers tell the story of rapid change: card payments made up the bulk of consumer payments in Australia in 2022, whilst cash payments decreased to just 13 per cent from 69 per cent in 2007.
This dramatic shift has accelerated since COVID-19, leaving many seniors feeling left behind.
Did you know?
Did you know?
Cash usage in Australia has plummeted from 69 per cent of all transactions in 2007 to just 13 per cent in 2022—but half of all Australians over 65 still use cash regularly, highlighting a growing disconnect between business practices and customer needs.
Understanding surcharge rules
When businesses do accept cards, they're allowed to add surcharges—but there are rules. If there is no way for a consumer to pay without paying a surcharge, the business must include the minimum surcharge payable in the displayed price for its products.
In Lune's case, the controversy was partly resolved by sharp-eyed commenters who noticed the sign's fine print stating the surcharge excluded EFTPOS transactions. This meant customers could avoid the 1.2 per cent fee by using their debit card with PIN rather than tapping their credit card.
A payment surcharge is considered excessive if it exceeds the 'cost of acceptance'. For example, if a business's cost of acceptance for Visa Credit is 1 per cent, they can only charge customers the same amount.
Relief is on the horizon
Here's the good news: significant change is coming. The Federal Government has announced it will mandate that businesses must accept cash when selling essential items like groceries and fuel, with final details to be announced in 2025 and the mandate expected to commence from 1 January 2026. [6]
New cash mandate coming January 1, 2026
The government will require businesses selling essential goods and services to accept cash payments. This includes:
- Supermarkets and grocery stores
- Pharmacies
- Petrol stations
- Utilities
Small businesses with annual turnover under $10 million may be exempt
Final details to be announced in 2025
The initiative aims to ensure that Australians who rely on physical currency—including older Australians, those in regional areas and people without easy access to digital banking—are not excluded from making everyday purchases.
The move is designed to balance consumer choice and protect vulnerable groups in an increasingly cashless society.
Navigating the cashless world today
While waiting for the 2026 changes, there are ways to avoid surcharges and access cashless businesses:
Smart strategies for cashless payments
- Use EFTPOS with PIN instead of contactless to avoid credit card surcharges
- Look for the 'excluding EFTPOS' fine print on surcharge signs
- Ask staff about fee-free payment options before ordering
- Consider a debit card if you don't have one—it works like cash from your account
- Remember: businesses must clearly display all surcharge information upfront
Many banks now offer debit cards that work just like EFTPOS but can be used for online purchases too. These draw directly from your account like cash, avoiding credit card surcharges entirely.
What this means for your daily life
The cashless trend affects more than just buying croissants. In regional areas, the impact is particularly pronounced—21 banks in regional Queensland closed or were threatened with closure between September 2022 and May 2023. This makes the 2026 cash mandate even more crucial for rural and regional seniors.
Queensland's experience during the 2019-20 Black Summer fires emphasised the importance of having cash on hand when EFTPOS machines and ATMs went down.
The Queensland State Disaster Risk Report notes that disruption to financial services during natural disasters can significantly impact consumers' ability to access basic goods and services.
The bigger picture
While businesses like Lune may continue their cashless policies for non-essential items (premium croissants don't qualify as essential groceries), the upcoming changes represent recognition that cash remains vital for many Australians.
For those who are hesitant about digital payments, particularly older Australians, continued support and education will be crucial to ensure that no one is left behind in the shift to cashless transactions.
What This Means For You
The Melbourne cafe controversy might seem like a small issue, but it highlights a much larger challenge facing Australian seniors. The good news is that help is coming, and in the meantime, understanding your rights and options can help you navigate this changing landscape with confidence.
What's your experience with cashless businesses? Have you found yourself excluded from shops that don't accept cash, or discovered clever ways to avoid surcharges? Share your stories and tips in the comments below—your experiences could help fellow readers navigate this changing payment landscape.
Original Article
https://www.kidspot.com.au/lifestyl...t/news-story/9e5cb063dae3612ed05ec890aec5eb1e
Payment methods | ACCC
Cited text: Businesses can choose which payment types they accept. It is legal for a business to specify the terms and conditions that they will supply goods and ...
Excerpt: Despite what many people assume, businesses can choose which payment types they accept, and it is legal for a business to specify terms and conditions for supplying goods and services, including whether they will accept cash payment.
https://www.accc.gov.au/business/selling-products-and-services/payment-methods
Mandating cash for essential goods and services long overdue, crucial reform: COTA Australia—COTA Australia
Cited text: Chief Executive Officer of COTA Australia—the leading advocacy organisation for older people—Patricia Sparrow said that with one in two Australian...
Excerpt: According to COTA Australia, one in two Australians over 65 years and about 35 per cent of 50-65 year olds use cash on a regular basis.
https://cota.org.au/news/mandating-cash-for-essential-goods-and-services-reform/
The future is cashless | For government | Queensland Government
Cited text: Card payments made up the bulk of consumer payments in Australia in 2022 whilst cash payments decreased to 13 per cent from 69 per cent in 2007.
Excerpt: The numbers tell the story of rapid change: card payments made up the bulk of consumer payments in Australia in 2022, whilst cash payments decreased to just 13 per cent from 69 per cent in 2007.
https://www.forgov.qld.gov.au/infor...-and-foresight/signals/the-future-is-cashless
Payment methods | ACCC
Cited text: If there is no way for a consumer to pay without paying a surcharge, the business must include the minimum surcharge payable in the displayed price fo...
Excerpt: If there is no way for a consumer to pay without paying a surcharge, the business must include the minimum surcharge payable in the displayed price for its products.
https://www.accc.gov.au/business/selling-products-and-services/payment-methods
Cash, Card and Cheque Payments in 2024: A Legal Guide for Businesses—Wadlow Solicitors
Cited text: A payment surcharge is considered excessive if it exceeds the 'cost of acceptance'. For example, if your cost of acceptance for Visa Credit is 1 per cent you ...
Excerpt: A payment surcharge is considered excessive if it exceeds the 'cost of acceptance'.
https://www.wadlow.com.au/articles/cash-card-cheque-2024-for-business-legal
Mandating cash for essential goods and services long overdue, crucial reform: COTA Australia—COTA Australia
Cited text: The Federal Government today announced that it will mandate that businesses must accept cash when selling essential items like groceries and fuel, wit...
Excerpt: The Federal Government has announced it will mandate that businesses must accept cash when selling essential items like groceries and fuel, with final details to be announced in 2025 and the mandate expected to commence from 1 January 2026.
https://cota.org.au/news/mandating-cash-for-essential-goods-and-services-reform/
A New Cash Mandate is Coming in 2026. Is Your Business Prepared? | BizCover
Cited text: The initiative aims to ensure that Australians who rely on physical currency (including older Australians, those in regional areas and people without ...
Excerpt: The initiative aims to ensure that Australians who rely on physical currency—including older Australians, those in regional areas and people without easy access to digital banking—are not excluded from making everyday purchases.
https://www.bizcover.com.au/new-cash-mandate-is-coming-is-your-business-prepared/
The future is cashless | For government | Queensland Government
Cited text: In addition, there has been a spate of rural and regional bank closures across Australia, with 21 banks in regional Queensland closed or threatened wi...
Excerpt: In regional areas, the impact is particularly pronounced—21 banks in regional Queensland closed or were threatened with closure between September 2022 and May 2023.
https://www.forgov.qld.gov.au/infor...-and-foresight/signals/the-future-is-cashless
The future is cashless | For government | Queensland Government
Cited text: Disruptions to financial services during the 2019—20 Black Summer, for instance, emphasised the importance of having cash on hand as EFTPOS machines a...
Excerpt: Queensland's experience during the 2019-20 Black Summer fires emphasised the importance of having cash on hand when EFTPOS machines and ATMs went down.
https://www.forgov.qld.gov.au/infor...-and-foresight/signals/the-future-is-cashless
Cash, Card and Cheque Payments in 2024: A Legal Guide for Businesses—Wadlow Solicitors
Cited text: For those who are hesitant about digital payments, particularly older Australians, continued support and education will be crucial to ensure that no o...
Excerpt: For those who are hesitant about digital payments, particularly older Australians, continued support and education will be crucial to ensure that no one is left behind in the shift to cashless transactions.
https://www.wadlow.com.au/articles/cash-card-cheque-2024-for-business-legal
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