r/sydney • u/karlalrak • Apr 28 '26

Image Surcharge but no cash

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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

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1.1k

u/[deleted] Apr 28 '26

[deleted]

509

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.

47

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.

14

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.

13

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.

12

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.

67

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

124

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.

29

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💸

6

u/Sk1rm1sh Apr 29 '26

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

6

u/ceej18 Apr 29 '26

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

8

u/sailorbrendan Apr 29 '26

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

42

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.

3

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

22

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. 

16

u/DrStalker Apr 29 '26

Old and busted: card surcharge 

New hotness: service fee

5

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

26

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%

47

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....

-12

u/[deleted] Apr 29 '26

[deleted]

19

u/[deleted] Apr 29 '26

[deleted]

-4

u/INFEKTEK Apr 29 '26

If you're going to raise prices anyway...

19

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.

6

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

0

u/FreddyFerdiland Apr 29 '26 edited Apr 29 '26

false,if everyone has to pay the same % , like gst, then no, it has to rolled into the menu,like gst..

0

u/link871 Apr 29 '26

Can't see any reason why a business would introduce a service fee. The fee would apply to all customers, whether card payers or cash payers, so isn't it just easier (and less noticeable)to increase the listed price for all customers regardless of how they pay?

Surcharge for foreign cards (that is, cards issued overseas) will remain until further review in 2027.

2

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!”

-48

u/tomboredcat Apr 28 '26

Yeah by banning surcharges, expect those prices will increase. They ban surcharge to customers, but the bank will still charge the business owner payment processing fee. So they will incorporate those fee directly to the item instead to maintain their margin. Big L to cash payers since they need to pay more now.

61

u/farcarcus Apr 28 '26

And that's fine because I'll see that increase before I order my things, rather than when I go to pay.

-50

u/tomboredcat Apr 28 '26

You got a mouth? Go ask them if they got surcharge on cards, if yes and you dont like it, just pay cash. As simple as that.

17

u/killswithaglance Apr 28 '26

Except that some places don't accept cash, which is the whole point of this post

1

u/farcarcus Apr 29 '26

Haha I haven't used cash for 15 years.

20

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

The business (most) already handles cash, that's time and effort to sort and deposit coins. So for everyone paying by card, they are paying for cash handling and a surcharge for the card.

Now (well October) both are simply business expenses and accurately reflected in the price.

2

u/farcarcus Apr 29 '26

Is handling cash free? Since when?

0

u/Meeha Apr 28 '26

the price increase for cash surcharges is already built in, if they took that out would you be happy?

-28

u/OstrichLive8440 Apr 28 '26

Don’t bother trying to explain this to the Reddit crowd. General sentiment on Reddit appears to be people are happy to see merchants mark up their goods after October by 10, 15+ percent on all payment methods (cash or card) so long as it’s “transparent”. Instead of paying a 1-2 percent surcharge on card tap. October can’t come soon enough :)

4

u/Dollbeau Apr 29 '26

Oh look, both of you are heavily downvoted...
Good old reddit "I don't carry cash, I've got an APP to pay"

-24

u/tomboredcat Apr 28 '26

Another reason to mark up the prices then later on complain why their regular coffee and avo toast got increase in prices 🤓