Cash Use Could Get a Boost as Australia’s Card Surcharge Ban Takes Effect

With the Reserve Bank of Australia’s (RBA) ban on card surcharges now in force, Australians may begin to see more businesses offering incentives or discounts for customers who choose to pay with cash instead of cards.

The change comes at a time when cash usage remains far below historical levels, although recent data suggests the long-term decline may be slowing.

According to the RBA’s 2025 Consumer Payments Survey, around 50 per cent of Australians used cash in a typical week during 2025. While this represents a dramatic fall from 97 per cent in 2007, it is slightly higher than the 47 per cent recorded in 2022, indicating a modest rebound in cash usage.

The surcharge ban means businesses can no longer directly pass card payment costs on to customers through separate fees. As a result, some retailers may look for alternative ways to encourage lower-cost payment methods, including offering discounts for cash transactions.

Previously, many consumers accepted card surcharges as part of the convenience of electronic payments. With those fees removed, businesses must absorb transaction costs themselves, potentially making cash payments more attractive from a cost perspective.

Industry observers suggest some small businesses, cafés, restaurants, and local retailers could increasingly promote cash payments because they avoid merchant processing fees associated with debit and credit card transactions.

Despite the slight increase in usage, cash remains far less common than it was a decade ago. Digital payments, contactless transactions, mobile wallets, and online shopping continue to dominate consumer spending habits across Australia.

However, advocates of cash argue that it remains important for privacy, budgeting, financial resilience during outages, and ensuring payment access for elderly Australians and people in regional communities.

The RBA has consistently maintained that cash remains a vital part of Australia’s payment system, even as electronic transactions account for the majority of everyday purchases.

Whether the surcharge ban leads to a significant revival in cash usage remains uncertain, but economists expect it could encourage some consumers to reconsider cash, particularly if businesses begin offering noticeable savings for using physical curr