Australia’s October 1 card surcharge ban is reshaping how consumers think about money and spending – especially heading into peak summer sales season. An RMIT expert explains the impact this could have on how consumers approach spending.
Dr. Marian Makkar, Associate Professor of Marketing:
“With surcharges no longer visible on receipts and prices rising across retailers to absorb payment processing costs, consumers are reverting to cash as their preferred payment method, forcing a more deliberate and intentional spending mindset.
“The psychological shift is significant: when fees were itemised, consumers saw the cost of convenience when spending with a card. Now buried in advertised prices, many are switching to cash or PayID to regain visibility and control over their actual spending.
“This regulatory change arrives at a critical moment. While summer sales traditionally encourage impulse buying through the convenience of card payments, this ban accidentally recreates a slower, more mindful consumer behaviour unseen in years.
“Heading into peak spending season, the transparency loss paradoxically creates spending awareness – consumers counting notes are reconsidering purchases and becoming more selective, despite attractive promotions.
“Combined with ongoing cost-of-living pressures, this ban alters Australian consumer psychology, making ‘spending season’ feel less like celebration and more like careful calculation.
“The result is a generation rediscovering the discipline of cash spending at precisely the moment retailers hoped to capitalise on summer enthusiasm.”
Marian Makkar is an Associate Professor of Marketing at RMIT University. Her research focuses on understanding and promoting consumer diversity and market inclusion at the intersection of identity, technology, branding, and institutions.
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