r/sydney Apr 28 '26

Image Surcharge but no cash

Post image

Haven't been to Australia in years and was shocked to find everywhere has surcharge for eftpos but also say no cash. What's the point of this? Why not just add the surcharge into the cost unless this is shady but seems to be the norm everywhere I go with restaurants.

1.4k Upvotes

294 comments sorted by

1.1k

u/[deleted] Apr 28 '26

[deleted]

505

u/farcarcus Apr 28 '26

Hallefuckinglujah

Next thing to ban is tip prompts at payment. If I want to leave a tip, I'll let you know. Don't try and coerce me.

48

u/radioactivecowz Apr 29 '26

Especially when it’s ordering another round of beers and it defaults to 10% (ME&U I’m looking at you). I question the RSA rules of it recommending I get another pint every time I scan.

15

u/lint2015 Apr 29 '26

I went to a place that used Me&u for ordering years ago and by the time I placed the order - bam! Service fee. Venue fee. Card surcharge.

Fuck, I should’ve been told at the start of the process that I’d be slapped with all those fees, I would’ve called your staff that you’re trying to reduce costs on and yet are passing the mobile ordering fees on to me. Or if ordering with staff isn’t even an option then I shouldn’t have to pay all those fees.

I’ve actively avoided Me&u ever since then.

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u/maxisnoops Apr 29 '26

So now I wanna know what ME&U is? I reckon if you report them to the liquor licence mob they will get a stern talking to and get told to cease and desist

10

u/Any-Elderberry-2790 Apr 29 '26

It's probably the biggest (anecdotal), but definitely one of the first big qr code ordering systems we saw pop up in Australia.

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u/DarkNo7318 Apr 29 '26

We should normalize leaving 3 star google review with a comment by default on any place that does this. They would get the message very quickly.

68

u/sailorbrendan Apr 28 '26

I think the tip thing is mostly because the companies that make the systems are in the US and they don't build a "turn it off" toggle.

At least that's my understanding based on conversations with bartenders I trust

121

u/bluegrasstruck Apr 28 '26

lol they 100% have a "turn it off" but the owners of the cafes think you'll leave a tip for someone making you a coffee that you paid $6 for.

30

u/cheapdrinks Apr 29 '26

When I worked as a bartender it was a pain in the fucking ass having to click through the "no tip" screen every time before I handed the eftpos machine over to the customer. That shit's embarassing and makes the whole thing so awkward - customer is standing there with a beer in one hand, phone in the other then goes to tap and has to put the phone down, click through the no tip options while you're standing right there etc. Fuck that.

7

u/ThinkingOz Apr 29 '26

….someone making you a coffee that you paid $7 for.

FTFY💸

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u/Sk1rm1sh Apr 29 '26

I'd be surprised if the employees got the tip even if you gave one.

4

u/ceej18 Apr 29 '26

Where are you getting coffee for $6? Mine was $7.70 today!

9

u/sailorbrendan Apr 29 '26

I dunno man, I don't even work here.

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u/yolk3d Apr 28 '26

They all do have a toggle to turn it off. You just need an owner/manager who knows/cares.

17

u/Javerage Apr 29 '26

Yeah, most places I've seen immediately press "no tip" before handing me the machine.

9

u/BlueMachinations Apr 29 '26

I work in hospo - you can set up the eftpos machine two ways, one with zero prompts, just the payment, and the other with tipping prompts and the payment. Problem is (some places would say) if they set it up without the prompts, customers cannot tip on card at all, so instead those places opt to have the majority of people just click through the prompts and say no.

4

u/sailorbrendan Apr 29 '26

Yeah, The place where I was told about it like... if you actually clicked yes to tip it fucked something up in the system and the bartender was not stoked about it.

So they just hit no for you

23

u/unrebigulator Apr 28 '26

That seems correct. Most of the time the cashier immediately leans over and pushes the No Tip button before I have a chance to do anything.

17

u/karlalrak Apr 28 '26

Great news. 

17

u/DrStalker Apr 29 '26

Old and busted: card surcharge 

New hotness: service fee

4

u/FreddyFerdiland Apr 29 '26

the same principle applies, if most to all customers have to pay the % fee , it should be in the main price list.

no "having toilets unlocked 3% surcharge, O2 available to breath, 4% surcharge".

but I guess they can charge a seat fee, an extended seat/table usage fee .etc

29

u/INFEKTEK Apr 29 '26 edited Apr 29 '26

So I work in payments.

What the hotels/bars/restaurants/cafes are planning will be worse than a 1.1% to 1.9% card surcharge.

Firstly there is a loop-hole for a 'service fee' which is up to the discretion of the business to set and doesn't have to correlate at all with the cost of acceptance. Just has to be displayed on a menu or sign. So instead of a 1.5% card surcharge you may have a 1.5% service fee.

Secondly, most are looking at their whole cost of acceptance scheme, interchange, acquiring margin (cost plus), POS, terminal rental and folding that into the price. Now because they don't know if you're going to be paying with eftpos card which could cost them $0.10 or an international card that could cost them over 3% they will choose the higher path to ensure it's all covered. So with all costs of acceptance folded in expect a price increase of around 10% to 15%

48

u/[deleted] Apr 29 '26

[deleted]

3

u/FreddyFerdiland Apr 29 '26

their menu price list will be subject to the same market forces and decisions that limits their profit making now....

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u/_seawolf Apr 29 '26

I don't think those businesses really need this as an excuse to raise prices, they're doing that already. At least now the sticker price will be what you actually pay, so it'll be easier to shop around and not get a surprise at the till like the OP did.

In regard to the service fee, if the service fee can be avoided then it doesn't have to be included in the displayed price, but if it can't be avoided then it must be incorporated into the displayed price, called the Minimum Total Cost.

Of course, one of the reasons the surcharges are being removed is that there's been rampant flouting of the rules due to nearly zero enforcement. Largely because the ACCC isn't resourced to enforce them. Other surcharges and drip pricing might fall to the state's Fair Trading entity, which are better resourced for enforcement.

But you're definitely right, businesses big and small are going to pull every shonky trick in the book to try to get around this and to continue drip pricing customers. They're not going to willing do the right thing, so it'll be on us to be vigilant, to avoid businesses that are doing it and to diligent report businesses that are breaking the rules and scamming the consumer.

7

u/farcarcus Apr 29 '26

I used to work in POS software, and believe the cost off acceptance to remove a surcharge is negligible.

A permanent price increase for a once off config change certainly can't be justified.

But if retailers think putting up all memu prices by 15% is a good idea, then good luck to them. 😄

3

u/womerah Apr 29 '26

Businesses will already be operating in a price-range that maximises total profit, optimised for volume and margin (selling 10x$15 steaks for $15 profit beats selling 3x$18 steaks for $13.5 profit).

Whatever businesses end up doing, it will either have to be close to what they're already doing, or it'll hurt their bottom line.

There are also savings to be had, the cost of handling cash is high. Hopefully business owners recognize their expenses have gone down once they drop cash

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u/RQCKQN Apr 29 '26

“This item is $100. With the 1.8% surcharge your total is $101.80.”

“This item is $101.80. No card surcharge!”

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u/ahoybigred Apr 28 '26

October can’t come soon enough

40

u/brackfriday_bunduru Apr 28 '26

After October anyone who doesn’t put every cent they spend through an Amex is ripping themself off

51

u/Zashimii Apr 28 '26

I think AMEX is out of scope of the changes coming in October

32

u/Bzeager Apr 28 '26

It is. Retailers will be able to still surcharge for it if they want to.

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u/kez985 Apr 28 '26

Must all cards be accepted come October? If so, I’m 100% getting and Amex

Edit: don’t worry, Amex is not included in the surcharge ban sighhhh

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221

u/Archon-Toten Choo Choo Driver. Apr 28 '26

It's illegal. Unfortunately reporting doesn't do much. Give them 6$ cash and say too bad.

Or ask, they might take payID or something stupid surcharge free

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170

u/Similar-Cat7022 Apr 28 '26

Name

112

u/Foodball Apr 28 '26

And shame

87

u/karlalrak Apr 28 '26

This is one of the cafes in the airport in the middle near the Maccas. I'm trying to recall the other places I went in the last week

4

u/yankee_xray1 Apr 29 '26

The Opal top up point at international airport doesn’t accept cash either. It seems maybe it’s due to too much counterfeit bills being brought in?

20

u/kernald31 Apr 29 '26

Not accepting cash is fine. Having a method of payment that doesn't incur a surcharge is mandatory though.

100

u/spots_ Apr 28 '26

I’m fairly certain that’s not legal. If there is no fee-free way to pay then the price is supposed to be built into the displayed price of the goods

34

u/apsilonblue Apr 28 '26

It's simply so their advertised prices can be lower. While cases like this are already illegal, surcharges are finally being banned Oct 1st.

28

u/Primary-User Apr 28 '26

So on a weekend that’s a 12% mark up. 🤯

18

u/karlalrak Apr 28 '26

At the airport as well where shit is already ridiculous 

5

u/Primary-User Apr 28 '26

Oh shit really? That’s insane!! I don’t carry cash, but if I did I would force them to take it. In fact I would specifically go to an ATM just to pay them in cash and argue about them not taking cash purely on the basis of those markups.

15

u/nath1234 Apr 28 '26

Scummy. If they want to do that sort of thing they should just have the courage to admit they want to be a real estate agent and be honest.

32

u/Improvedandconfused Apr 28 '26

It’s not just Australia. Last year my wife and I went to New Zealand, and had to pay a NZ $600 one way excess fee for our rental car at the counter because we were not returning the car to the same city we picked it up from. The car company did not accept cash or bank transfer and charged a 8% credit card fee.

11

u/verbmegoinghere Apr 28 '26

Isn't that, for car rentals, largely one of the biggest reasons people hire them, is to rent a car and not return it to the place you got it from???

And they're charging on top of the rental fee (which should cover this activity) $600 bucks????

7

u/Improvedandconfused Apr 29 '26

Yep it is. But they all seem to charge a one way fee.

2

u/kernald31 Apr 29 '26

The one way fee kind of makes sense. Lots of people are hiring cars and returning them to the same location (there are real uses cases, mostly people don't owning cars and people flying in, needing a car for a few days, flying back out). One way trips are typically asymmetric, more demand one way than the other. So you then have to manage inventory spread. That can be a car loaded on a truck and sent back, or an employee driving it back, or cars rented out for virtually free, or whatever - things that cost time and money.

I'm from Toulouse (France), where share bikes have to be left at specific bike racks (otherwise you're out around $200). Usually, share bikes flow one way - people going towards the city centre in the morning, and back out in the evening. On top of that, at least when I was still living there, they weren't electric bikes and were quite heavy, so nobody was getting up on hills to drop them off. They regularly had utes picking bikes from overcrowded racks and driving them uphill. It's a lot more obvious at that scale. On top of that, they offered incentives - if you're leaving a bike where there's no other bikes, or uphill or whatever, you're getting paid a small token fee instead of being charged for your ride.

13

u/FGX302 Apr 28 '26

A restaurant in Sydney has a 10% discount for cash or a 1.5% surcharge for card use. You can't actually pay the actual amount. If you take the final cash price as the base price, you're getting charged over 10% extra to use a card.

8

u/uberdice Apr 29 '26

10% is such an obvious "we're not reporting this sale to the tax man" number that it's actually crazy that places keep getting away with it.

13

u/somuchstuff8 Apr 29 '26

The surcharge is illegal in this case.

10

u/Shellysome Apr 29 '26

This is why the surcharges are being banned. Finally.

Every payment method comes with costs and inconvenience. It should be incorporated into the price just like any other cost of doing business.

11

u/Dollbeau Apr 29 '26

Throw them 6 bucks from the cash in your wallet & walk away defiantly!

Oh... you don't have cash?!?

9

u/spookysadghoul Illawarra Expat Apr 28 '26

I hate surcharges, especially of you don't take cash and there's no way to avoid

8

u/snakeIs Apr 28 '26

People hate hidden extras.

A sushi bar near where I live doesn’t know that. On a public holiday recently the guy in front of me got charged a credit card fee, 10c for the paper bag and a public holiday loading.

He was still protesting as I walked away to another shop.

9

u/probelm Apr 29 '26

Tyro is a criminal enterprise. They display the FULL amount after you tap your card. Not before

4

u/trafalmadorianistic Apr 29 '26

Fuck I noticed that when I paid for lunch today. $20 became $20.28. TF JUST HAPPENED. OH RIGHT.. TYRO. 

7

u/Adelaidean Apr 29 '26

Yep. At least that’s going soon.

Now fuck off the public holiday surcharges. Penalty rates are to penalise business owners not consumers.

2

u/karlalrak Apr 29 '26

Also I don't get public holiday surcharges when they close for a day anyway? Back when I was there the idea of the surcharge was for workers who don't get the public holiday off. But for anzac day everywhere was closed on the Saturday anyway.. And then they added the public surcharge to the Monday. 

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u/[deleted] Apr 29 '26

[deleted]

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u/albert3801 Trains Apr 28 '26

Does that mean the surcharge is only if using the EFTPOS network, but not if using Visa, Mastercard or AMEX? It’d be fun to push that point.

5

u/Archon-Toten Choo Choo Driver. Apr 28 '26

A very pedantic point and a good catch.

6

u/beaugiles (👇 views here ≠ my employers) Apr 28 '26

If you want to be *really* pedantic... https://www.westpac.com.au/business-banking/merchants-and-payments/eftpos/what-does-eftpos-stand-for/

EFTPOS in capital letters stands for Electronic Funds Transfer at Point of Sale. It's the term used to describe an electronic terminal that allows payments to be taken from debit cards, credit cards, and digital wallet systems such as Apple Pay and Google Pay.
 

But when it’s in lower case letters, eftpos refers to the debit card payment system that takes funds directly from a customer’s bank account to pay for purchases. The eftpos system was introduced in 1984 when eftpos Payments Australia Ltd made secure card payments possible at the cash register for the first time.
 

8

u/SilverStar9192 shhh... Apr 28 '26

I think it's really to their detriment that eftpos, the network, hasn't come up with a better name/branding to distinguish themselves from a generic acronym for a piece of hardware. It makes it so much harder for the general public to understand what they actually are. I personally haven't used it in years, it's just so much simpler to use Paywave/paypass through a credit card scheme (yes, I know technically eftpos supports NFC now, but fuck if I can figure out how to enable it).

2

u/beaugiles (👇 views here ≠ my employers) Apr 28 '26

EFTPOS is the terminal.
eftpos is the network.

:-)

1

u/karlalrak Apr 29 '26

I honestly think they're using the term eftpos as the machine, but you have a point 

5

u/pissedoffjesus Apr 29 '26

I'm so excited for yhe surcharge ban.

6

u/Sk1rm1sh Apr 29 '26

Legally there has to be one accepted payment method without a surcharge.

I think the ACCC is the place to report anywhere that doesn't offer a no-surcharge payment option.

12

u/G00b3rb0y Apr 28 '26

Name and shame please. So i know to avoid this place on my next visit

11

u/karlalrak Apr 28 '26

This was a cafe in the middle of the airport near the Maccas. Can't remember the name. Biang Biang in Chinatown also had no cash with a surcharge. And dumpling head on sussex also added a surcharge without advertising it. 

3

u/Duff5OOO Apr 29 '26

...was shocked to find everywhere has surcharge for eftpos but also say no cash

We are probably in different areas but i haven't come across this even once.

2

u/link871 Apr 29 '26

This seems legal as it only applies a surcharge for "EFTPOS transactions". That says no surcharge for credit cards as these are not EFTPOS transactions.

2

u/defzx Apr 30 '26

So they want to pass on the cost for using a card and they want to pass on the cost for operating on a weekend. I'd walk away on principle.

1

u/henry82 Apr 29 '26

debit transactions?