Should cashless cafés be allowed to add mandatory fees? This café says yes

Imagine walking into a café, craving your morning coffee, only to discover there’s no cash option.

You reach for your card, expecting to pay the menu price, and then… bam—a mandatory 2 per cent surcharge hits your bill.

Suddenly, your latte costs more than advertised, and there’s no way to avoid it.

The controversy at Malibu Barbie Café

The controversy at Melbourne's Malibu Barbie Café has captured widespread attention after a customer vented their frustration on social media.

The Chadstone café, known for its flashy pink theme, operates entirely cashless while adding a 2 per cent surcharge on every card transaction.

The ACCC's guidelines are clear: if customers cannot avoid a surcharge, it must be included in the advertised price.

Businesses are required to display the total price—the lowest possible cost—including any unavoidable fees.

Malibu Barbie Café’s method of listing one price while charging more appears to breach these rules, potentially misleading customers about the true cost of a product.

Café response and legal limits

When challenged, the café defended the fee as covering 'additional staffing and servicing required to deliver the Barbie Café experience, including immersive photo opportunities, themed hosts, and enhanced operational services.'

However, the law only allows surcharges to reflect the actual cost of processing a payment—not general operating costs like wages or electricity.

The federal government has been cracking down on excessive payment surcharges, with $2.1 million allocated to the ACCC in 2025 to tackle misleading fees.

The regulator has prioritised enforcement against such practices for the 2025-26 financial year, and a potential ban on debit card surcharges could take effect from 1 January 2026, pending Reserve Bank review.

What it means for your wallet

For everyday Australians, unavoidable surcharges can feel like an extra burden.

The cost of processing credit cards generally ranges from 1 per cent to 1.5 per cent, while debit cards average around 0.5 per cent.

A flat 2 per cent fee on all cards, like Malibu Barbie Café charges, seems notably high and out of step with typical processing costs.

Many customers expressed annoyance online, capturing the frustration perfectly: 'I'm not gonna blink if the coffee is $5.30 instead of $5.20 but if it says $5.20 then you charge $5.30 I'll be mildly annoyed and may go elsewhere next time.'

If you encounter a business charging unavoidable surcharges that are not included in the advertised price, you have options.

The ACCC recommends speaking with the business first, as some operators may not fully understand the rules.

If this fails, a formal complaint can be lodged online, helping regulators monitor and enforce compliance.

Looking ahead

Consumers may soon see relief, with government initiatives aiming to lower household and business costs and improve competition in the payments system.

The potential 2026 ban on debit card surcharges could provide meaningful savings for card users.

In the meantime, questioning fees and reporting misleading practices can protect both yourself and other customers.

The Malibu Barbie Café case highlights the importance of consumer awareness and advocacy—one complaint can help ensure fairer pricing for all future visitors.

If the Malibu Barbie Café incident left you wondering just how common these card surcharges are, there’s more to explore on the topic.

Many businesses are adding extra fees to card payments, sometimes without clear explanation, affecting everyday purchases.

For a deeper look at how these surcharges are quietly increasing costs at cafes and stores, this story offers valuable insights.

Read more: Cash or card? Why those extra fees are hitting your wallet harder than ever

Have you ever felt trapped paying extra fees at a cashless venue?