Yahoo Finance Cashless warning as Aussie business reveals ‘sad’ reason ATM removed: ‘No choice’
The Brisbane business warned it was "only a matter of time" before businesses passed on EFTPOS fees to customers.
An Aussie diner has sparked debate after revealing the “sad” reason its ATM was removed from its premises. The Brisbane business said there were major risks that came along with the shift towards cashless payments and it's "only a matter of time" before customers bear the brunt of it.
Joe’s Diner Eagle Farm shared its ATM was removed this week and claimed the machine provider told them it wasn’t being “used enough to warrant having it”. Cash made up just 13 per cent of payments in Australia in 2022 and that figure is expected to drop to just 4 per cent by 2030.
As card becomes the dominant form of payment for Aussies, RMIT associate professor of finance Dr Angel Zhong told Yahoo Finance businesses were faced with the “dilemma” of copping the associated EFTPOS fees and charges, or imposing a surcharge on customers.
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“I don’t think people quite realise what comes with having no cash,” Joe’s Diner Eagle Farm wrote on Facebook.
“The EFTPOS fees that we pay to the banks [are] crazy and it’s only a matter of time before every business charges those fees to the customer.
“It’s getting harder and harder for every small business to survive. Sad times but it’s the reality facing everyone.”
The Reserve Bank of Australia (RBA) estimated EFTPOS payments cost less than 0.5 per cent of a transaction to accept, Visa and Mastercard debit cards cost between 0.5 and 1 per cent, while Visa and Mastercard credit cards cost between 1 and 1.5 per cent.
Joe's Diner said businesses would soon have "no choice" but to pass on these costs to customers.
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ATMs in Australia dwindle
The number of bank and privately-owned ATMs in Australia have been decreasing as cash usage drops.
Bank-owned ATMs dropped to just 5,693 in June 2023, according to Australian Prudential Regulation Authority (APRA) data. That’s more than half the 13,814 ATMs that were once available in Australia in 2017.
APRA doesn't have data on the non-bank ATMs in Australia however, industry association Australian Payment Networks reported that there were a total of 23,769 ATM terminals in June 2024. That would mean there are about 18,000 private ATMs.
Aussies weigh in on cash usage
Hundreds of Aussies have responded in the comments of the post, with many agreeing with the diner’s sentiment.
“This is sad and something all small businesses are suffering dealing with unfortunately a sign of the times and everyone using their phones to pay!” one wrote.
“The impact will be felt by everyone. lt might feel convenient to use cards but in the end it will be at a huge cost to all,” another agreed.
Others argued private ATM’s imposed high fees for withdrawing cash, with some charging up to $4 per transaction, so there might be a silver lining for consumers.
“Those machines have the highest fees for pulling out cash so it’s a good thing when they disappear,” one person said.
Others were against the idea of businesses passing on EFTPOS fees to customers, saying it was simply the “cost of doing business”.
“I don’t like how people on charge that fee to consumers. Do you charge us $0.30 when the cost of gas goes up, do you charge us a fraction more that week when the cost of delivery XYZ goes up?” one person wrote.
Waave research found 71 per cent of Aussies were concerned about the shift to a cashless society, with 41 per cent admitting they were “extremely concerned”.
Surcharges costing Aussies $4 billion
Dr Zhong said businesses were now faced with the decision of whether to absorb EFTPOS fees or pass them on to customers by way of surcharges.
“If you don’t impose the surcharges on your customers, that means [businesses] will have to bear the costs,’’ she told Yahoo Finance.
“They are facing this dilemma which is why they also want to attract people who prefer to use cash.”
Swinburne School of Business and Law’s Professor Steve Worthington said businesses struggling with the rising cost of electronic payments needed to reflect that in their standard pricing, not through an extra charge.
“We are being asked to pay part of the electricity and part of the water and part of the wages, [and] now for payments. But these are costs that should be embedded in their prices,” he told Yahoo Finance.
Dr Zhong noted there were "hidden" fees associated with using cash as well, including the cost for businesses to handle, count and bank cash.
Joe’s Diner has been contacted but was unable to comment. ATM provider Cardtronics declined to comment.
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