Tap and go? Credit cards? In these suburbs, cash is still king
Plenty of shops have signs outside warning that they do not accept credit cards – cash only, please. Others, like eatery Sen Viet, say they have Eftpos before rummaging through boxes to bring out a disconnected machine. Almost every transaction is made in cash, even at the few vendors who accept card payments with a hefty surcharge. 'Ninety per cent of customers always pay cash,' says Pok's Sweets owner Ngoun Viengkhou.
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AU Financial Review
20-07-2025
- AU Financial Review
Tap and go? Credit cards? In these suburbs, cash is still king
On John Street in Sydney's Cabramatta, cash is still king. The main strip, flush with hole-in-the-wall eateries, is bustling in the early afternoon. A butcher painstakingly collects a dozen or so coins in exchange for a cut of meat, picking up the fiddly 5¢ pieces that have slipped onto the meat display counters. Plenty of shops have signs outside warning that they do not accept credit cards – cash only, please. Others, like eatery Sen Viet, say they have Eftpos before rummaging through boxes to bring out a disconnected machine. Almost every transaction is made in cash, even at the few vendors who accept card payments with a hefty surcharge. 'Ninety per cent of customers always pay cash,' says Pok's Sweets owner Ngoun Viengkhou.
The Age
16-07-2025
- The Age
Banks can afford a free service to customers
To submit a letter to The Age, email letters@ Please include your home address and telephone number. No attachments, please include your letter in the body of the email. See here for our rules and tips on getting your letter published. Businesses would not need to apply surcharges to credit and debit card transactions if the banks did not charge traders commissions as a percentage of card trade (″ Ban on card surcharges risks job cuts, price hikes ″, 16/7). Banks (recipients of enormous profits) can well afford to offer cards as a free service to traders and shoppers given the very high interest rates charged to the many customers who use cards as a form of borrowing. Kevan Porter, Alphington Financial growth must align with wellbeing The government's economic roundtable will look at proposals to grow our economy and lift living standards (″ Tax reform must protect bottom line: Treasurer ″, 15/7), but the two are not necessarily correlated. Growth is a flawed indicator of overall wellbeing, and is detrimental when pursued at the expense of environmental sustainability and social equity. It certainly doesn't relate to personal happiness. We have had a huge amount of growth since 2000, but housing affordability has rapidly deteriorated, along with environmental capital on which our economy and health ultimately depends. The wellbeing of people and the planet must be integral to any economic decisions if we are to have a viable future. Jennie Epstein, Little River Bring on the cash revolution I refer to your correspondent's letter (16/7) regarding a bank or banks charging for teller assistance. How dare we ask for face-to-face service? But if we try to not be a pest and instead use our cards to buy goods, a surcharge is applied at the point of sale. That surcharge is also a percentage, as if data for a $200 transaction costs more to process than for a $20 one? Using cash again might be the fight back? The cost to banks of those micro-bits of data running between EFTPOS machines and the banks, is nothing compared to the end cost to them of people paying cash instead. Think of the cost of extra branches to handle the number of traders banking that cash and the extra staff required to handle it. It would be a great public relations exercise if the banks were just grateful for the costs they are saving by our card use. Gerry Lonergan, Reservoir Treasurer, how do we do better? Treasurer Jim Chalmers promised that the Labor government could build 1,200,000 homes by 2029. The number of homes constructed is already tens of thousands under the builds required to meet the target after a year. Considering that it estimated that there will be just under a million immigrants by the end of 2029 the housing crisis is not going to ease. Chalmers' response is that we would need to 'do better' – blind Freddie could see that. Where are the plans detailing how we do better? There are not enough skilled tradespeople to build, there is not enough developed land to build, there are not enough building materials to construct homes. Forty seven per cent of the building cost is in government taxes and statutory costs – immediately think of 10 per cent GST and superannuation on wages of 12 per cent. At the same time, Chalmers is under extreme pressure to increase taxes to balance the expenditures being made. Australia is following the economic mayhem that we have in Victoria. Ross Kroger, Barwon Heads It's deja vu all over again So the treasurer is going to have a powwow with invited guests to talk about tax. It is all very nice until someone suggests that some people might have to pay more. Then the tears and the fireworks start and it all becomes too hard. We need only go back to the Henry Report of 2010 with its many recommendations of which only a few were implemented. Treasurer, deja vu is writ in the skies. John Rome, Mt Lawley THE FORUM Putting youth to use Ross Gittins (Comment, 16/7) asked the question, 'Defence against who?' but the question should be widened to 'against what?' Recent emergencies have included bushfires, flooding and pandemics. We expect a lot from our army of volunteers. How about showing our young Australians that not only are they are needed but how they can help. Yes, the topic is National Service. In the past this has always been military service but why not have our young people trained and able to respond to other emergencies. Also, let's ensure this would be a period of paid employment and a chance to see and experience the more remote parts of this country. And it would be 'defence spending' for those concerned about increasing the amount spent on 'defence″. Albert Bland, Boronia Boots on the ground In the absence of a land border between Australia and another country it is all too easy to think that, as your correspondent (Letters, 15/7) indicates, future conflicts will be fought with all kinds of satellites, drones and AI-derived weaponry. In case it has escaped anyone's attention, the war being fought in Ukraine is very much being fought on land by humans. Defence by cyber attack and distant weapons of destruction is inevitable, but so ultimately is defence by foot and by army. Finland, like many other countries (eg, Israel) has conscription to have an armed force on the cheap. Given Australia's history, the very idea of reintroducing conscription here as a purely defence measure may well be a step too far for any government in the foreseeable future. In the meantime, our vastly understaffed land army is all the deterrent we have regarding boots on the ground. It is not necessary to have a particular threat in view to boost defence readiness, but it is necessary to be prepared for any eventuality, even if we can only afford 2.3 per cent of gross domestic product. John Whelen, Box Hill Sth
The Advertiser
16-07-2025
- The Advertiser
Cafes, small businesses fear brunt of surcharge cut
After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said. After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said. After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said. After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said.
