Anthony Albanese’s video on the price of a regular coffee has backfired despite the Prime Minister looking to end debit card surcharges.
The Australian Labor Party shared a video social media on Thursday of Mr Albanese comparing the price of two takeaway coffees.
‘This flat white costs $5,’ he said raising up one cup.
‘And this one costs $5.10. Why? Because this one was paid for with cash and this one was paid for with card.
‘It’s not fair. These excessive card surcharges just aren’t right and over the course of a year, it adds up.
‘So we’re preparing to ban the surcharges on debit cards.’
However many café shop owners called him out over the proposed ban.
‘As a coffee shop owner this will only make the coffee prices go up to cover the surcharge cost from the banks.’
Anthony Albanese ‘s TikTok on the price of a regular coffee has backfired despite the Prime Minister looking to end debit card surcharges
Another added: ‘Stop the banks from charging small business owners exuberant fees, then.
‘Don’t penalise us for trying to stay afloat. Eftpos fees cost me thousands a year, if I don’t pass them to my clients.’
A third said: ‘Right so the coffee shops just cop the electronic transaction fee which will lead them to either collapsing or raising their prices? Shambles.’
‘Make the small businesses who have to pay fortunes to run Efptos machines foot the bill,’ a forth added.
However, owner of Rashays, Rami Ykmour commended the government for the ban on surcharges and called for Mr Albanese to take it a step further.
‘If you listen carefully to Mr Albanese, he saying he only wants to take the charges off debit cards, again he’s stopping short.
‘It should be taken off all cards, debit and credit cards. Mr Albanese, stop playing us.’
He explained that Rashays no longer charges debit and credit card surcharges on any transactions. Instead, the business is now absorbing those costs as part of its daily operating expenses.
Rashays no longer charges debit and credit card surcharges on any transactions
Other Aussies took the chance to make digs at the PM, some pointing to his recent purchase of his $4.3million waterfront property on the NSW Central Coast.
‘Does coffee on the central coast cost $4.3million?’ one wrote.
‘Yes because it’s Eftpos surcharges that are the reason families are sleeping in cars,’ said another, referencing Australia’s housing crisis.
‘You know what else isn’t right Albo? Getting taxed on our wages, then taxed on fuel, on groceries, clothes, and everything else we purchase,’ one commented.
‘So I got my tax bill and it says I can pay with credit or debit card but will incur card charges, so it’s ok for the government to charge?’ one said.
‘The coffee actually cost $3 before you came into power,’ another posted.
Meanwhile, others commended the PM on taking steps to stamp out the surcharge altogether.
‘Good on you Albo,’ one said.
‘Good idea, would be nice for things to cost what you are told at the register,’ said another.
‘Excellent news,’ a third said.
The Australian Competition and Consumer Commission will be given an extra $2.1million of funding to investigate the fees which are paid by businesses to banks to use card readers, and ultimately passed on to shoppers.
Labor is searching for ways to reduce the price of grocery bills and other charges on struggling households.
Treasurer Jim Chalmers said the government was prepared to ban debit card surcharging from the start of 2026, pending further consultation by the Reserve Bank of Australia.
‘Consumers shouldn’t be punished for using cards or digital payments, and at the same time, small businesses shouldn’t have to pay hefty fees just to get paid themselves,’ he said.
‘We’re prepared to ban debit card surcharges, subject to further work by the Reserve Bank and safeguards to ensure small businesses and consumers can both benefit from lower costs.’
The RBA is responsible for regulating the payments system and is conducting a review of the costs to merchants and the level of surcharges levied on consumers.
Months ago, National Australia Bank boss Andrew Irvine admitted surcharges on card payments were outdated and ‘outrageous’.
Labor is looking at cutting the surcharges customers cop when using eftpos machines
He said surcharging may have been warranted two decades ago when card payments were rare and most people paid in cash, but not today.
Mr Albanese said the ‘number one priority is to ease the cost of living for households and businesses, and this is another step to protect Australians’.
While inserting a card into an Eftpos machine typically costs a merchant less than 0.5 per cent per transaction, using contactless Visa and Mastercard payment can amount to 0.5 to 1 per cent each time for debit cards and 1per cent to 1.5 per cent for credit cards.
On a purchase of $100 the average cost added is 28c for EFTPOS, 52c for using the Mastercard network, 47c for using Visa and a whopping $1.88 for digital payments provider Square.
While some larger businesses absorb these costs into the price of their goods and services, many smaller ones pass them on in the form of higher prices.
