Since the card surcharge ban started on 1 October, cash discounts have popped up at cafes, while some businesses have added platform or service fees to online orders.
The Australian Restaurant and Cafe Association says about 10% of the industry has taken up some form of cash discount. Most are 2-5%, though some reports mention up to 10%. The association expects more once owners see their first merchant fee bill after the ban.
Using a tracker’s average of $5.16 for a regular flat white, a 5% cash discount brings it to about $4.90. Three a week saves more than $40 a year.
Online ordering flips that. Money found cafes charging up to 50 cents extra through their apps. For three flat whites a week, ordering by app costs $2.28 more than walking in and paying cash, or about $118.56 a year.
Discounts for PayID or QR payments are legal, but the association doesn’t expect cafes to roll them out soon because the payments are slow to match against sales.
What it means for your money
For your regular coffee, ordering at the counter and paying cash is now the cheapest option, as long as you aren’t paying ATM fees to get the cash. Check the final total on café apps before you tap pay, because small fees add up over a year.
Source: Money Magazine