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Digital Tag

You might have heard that the Australian Government is preparing to ban debit card surcharges – those pesky percentages added to seemingly every electronic transaction.

Don’t get too excited. While the Reserve Bank of Australia (RBA) is reviewing card surcharges – which cost Australians anywhere between $1 billion and $4 billion a year – any change would not come into effect until 2026.

Have you heard about PayID scams? Perhaps you or a friend have fallen foul of the electronic payment system?

More than 18 million Australians have signed up to use PayID since its launch six years ago. The attraction is simple: it’s easy to use, free, and money is transferred quickly – whether you’re paying or being paid. The unique identifier (the ID part) is linked to your bank account and you only need a mobile number or email (and an ABN or CBN if you’re a business) to send and receive money.

The Australian Banking Association maintains it’s one of the most important steps customers can take to prevent scams, but the mobile-friendly service hasn’t been immune to scammers. Even the tech-savvy younger generation - least likely to be caught in other financial scams - has been caught out.

Online platforms such as Facebook Marketplace and Gumtree are popular hunting grounds for PayID scams.

Ever wondered why your cup of coffee costs an extra 15 cents at one café and not another? Or when you go to pay for petrol with Visa or Mastercard, you're told it will cost another 1.5 percent? These added costs are known as card surcharges and while they might not account for much in one or two transactions, they certainly add up.

The Albanese Government is preparing to ban debit card surcharges - the amount a business charges to cover the cost of an electronic transaction – from 1 January 2026, pending a review by the Reserve Bank of Australia (RBA). Treasurer Jim Chalmers said consumers should not be punished for using cards or digital payments.