(The governments around the world have no choice but to act in the impending adoption of instantaneous crypto payments)

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the Reserve Bank of Australia (RBA) is proposing reforms to the payments system, including the elimination of surcharges and a reduction in interchange fees (the fees businesses pay card networks) starting in July 2026. While this will likely result in cost savings for consumers and businesses, the costs won't disappear but will be absorbed into base product prices.

Key Changes Proposed by the RBA

Elimination of Surcharges

: The RBA wants to ban surcharges on debit and credit cards, which are currently applied by some businesses to cover the costs of card payments.

Lowering Interchange Fee Caps

: The central bank proposes to lower the cap on interchange fees that merchants pay to card networks, potentially saving businesses around $1.2 billion annually.

Increased Transparency

: The reforms also aim to increase competition and transparency in the payments system.

Why these Changes are Being Made

Decline in Cash Usage

: The existing surcharging framework is no longer effective, as cash use has declined, and consumers have fewer opportunities to avoid these fees.

Simplified Pricing

: The changes are expected to make card payments simpler and more transparent for consumers.

What This Means for You

Consumers

: You will likely pay around $1.2 billion less in surcharges each year, though some of this cost may be absorbed into product prices.

Businesses

: You could also benefit from lower interchange fees.

What Happens Next

These proposed changes are still under consultation and are expected to take effect from July 2026 if implemented.