Cafes push cash as card surcharge ban bites

A Tasmanian cafe owner is openly urging customers to pay cash, as hospitality operators  weigh up absorbing card processing costs or lifting menu prices.

The conundrium comes following the federal government's ban on credit card surcharges, which took effect on October 1. 

Mumma Buzz Cafe 'N' Takeaway owner Carolyn Bussey has spent the past few weeks promoting cash at her Deloraine venue on Emu Bay Road, backed by signs reading "cash is our preferred method of payment".

"I verbalise and I've got the signs up - simple as that," Bussey told The Examiner.

Bussey, who bought the business eight years ago, estimates 85 per cent of her customers pay by card. Since she started the campaign, she has seen a swing of "3 or 4 per cent" back towards cash.

"It's a little change, but I'll keep talking their ears off," she said.

She said card fees were a significant burden for the cafe, pointing to the cost during the COVID period when card use surged.

"It's a heavy weight on a small business, everyone comes in and tap-tap-tap-taps on their card.

"Back in COVID times when everyone was basically using card, we were wearing the costs back then, and it was $1200 a month for people to tap the card.

"We can't wear it any more, not with wage increases, product increases ... so it's a push to use cash, as simple as that."

Bussey has also been encouraging patrons to carry a small cash buffer for local businesses.

"If you go in to buy a can of cordial or a sandwich or a coffee - just have $50 sitting there, that's all you've got to do."

According to Launceston Chamber of Commerce chief executive Alina Bain, business can't afford to absorb the costs.

"That's consistent with what the Australian chamber has been saying and the council of small businesses, and we back them in.

"Removing the card surcharges doesn't remove the costs businesses pay to accept those card payments, so businesses will look to pass those on just by increasing prices.

"That will provide upwards pressure on prices for consumers at a time where they're facing significant cost of living pressures."

Jonathan Jackson, 7th October 2026