Australia’s ban on credit and debit card surcharges took effect Oct. 1, prompting cafes, bars and other businesses to raise prices or absorb higher payment costs. The Labor government says the change will save consumers A$1.6 billion ($1.11 billion) a year and businesses about A$910 million, while the Reserve Bank of Australia and Australian Competition and Consumer Commission say card-acceptance costs should be reflected in overall prices rather than separate fees. Sydney bar owner Dre Walters said he would pass the cost on to customers, while Rusty Rabbit Cafe owner Peter Semaan said he raised food and cold-drink prices by about A$2 on average. The RBA says about 16% of businesses impose surcharges and estimates the policy’s aggregate effect on measured consumer prices at around 0.1%. It also lowered the maximum interchange fee on domestic consumer credit-card transactions to 0.3%, although Macquarie analysts estimate the fee changes could reduce banking-sector revenue by about A$900 million in 2027. The ban affects Visa, Mastercard and eftpos cards, with American Express and UnionPay also removing surcharges and PayPal Holdings following from Oct. 5.