Joe’s Diner Eagle Farm announced it was removing its ATMs this week as Australians prefer to pay with cards over cash. (Credit: Facebook/Getty)
An Australian diner has sparked debate after revealing the “sad” reason it removed ATMs from its premises. The Brisbane restaurant says the move to cashless payments poses huge risks and it’s “just a matter of time before” customers feel the brunt.
Joe’s Diner Eagle Farm announced the ATM had been removed this week, claiming that its ATM provider told them it “wasn’t being used enough to justify installing one”. Cash will make up just 13% of payments in Australia in 2022, and this figure is expected to fall to just 4% by 2030.
With cards becoming a more mainstream payment method for Australians, Dr Angel Zhong, associate professor of finance at RMIT, told Yahoo Finance that businesses are faced with a “dilemma” of whether to absorb EFTPOS-related fees and charges or pass on the extra costs to customers.
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“I don’t think people really understand what happens when you don’t have cash,” Joe’s Diner Eagle Farm wrote on Facebook.
“The EFTPOS fee paid to the bank is [are] This is crazy. It’s only a matter of time before every company starts charging their customers for this.
“It’s becoming harder for small businesses to survive. It’s a sad time, but it’s a reality we’re all facing.”
The Reserve Bank of Australia (RBA) estimates that the cost of accepting EFTPOS payments is less than 0.5% of a transaction, the cost for Visa and Mastercard debit cards is 0.5% to 1%, and the cost for Visa and Mastercard credit cards is 1% to 1.5%.
Joe’s Diner said businesses will soon have “no choice” but to pass on these costs to customers.
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Australia’s ATMs are declining
As cash use declines in Australia, the number of bank and private ATMs is also decreasing.
The story continues
According to data from the Australian Financial Regulatory Authority (APRA), bank-owned ATMs fell to just 5,693 in June 2023. This is more than half of the 13,814 ATMs available in Australia in 2017.
APRA does not have data on non-bank ATMs in Australia, but industry body Australian Payments Network reported that the total number of ATM terminals was 23,769 as of June 2024. That means there are about 18,000 private ATMs.
Australians give their opinion on cash use
Hundreds of Australians responded in the comments section of the post, with many echoing the diner’s sentiments.
“This is sad and all small businesses are suffering. Unfortunately it’s a sign of the times, everyone is paying with their phone!” one user wrote.
“The impact will be felt by everyone. Using the card may feel convenient, but in the end it comes at a huge cost to everyone,” agreed another.
ATMs are disappearing as Australians move towards cashless payments (Source: Getty)
Others argue that the move could be a relief for consumers because private ATMs charge high fees for withdrawing cash, some as much as $4 per transaction.
“These machines charge the most to get cash out so it’s good to see them going,” one person said.
Others opposed the idea of businesses passing on EFTPOS fees to customers, saying it was simply the “cost of doing business”.
“I don’t like the way they charge consumers this fee – you charge them $0.30 when gas prices go up, then the week XYZ delivery costs go up you charge them a little more?” one person wrote.
A Waave survey found that 71% of Australians are concerned about the move to a cashless society, with 41% admitting to being “very concerned”.
Surcharge to cost Australians $4 billion
Dr Zhong said businesses were now faced with the decision of whether to absorb the EFTPOS fee or pass it on to customers as an additional charge.
“Not charging customers extra means [businesses] “We have to cover the costs,” she told Yahoo Finance.
“They’re faced with this dilemma, and that’s why they want to attract people who prefer cash as well.”
Steve Worthington, professor of business and law at Swinburne University, said businesses struggling with the rising costs of electronic payments needed to reflect this in their standard prices rather than charging extra.
“We are being asked to pay electricity bills, water bills and part of our wages. [and] “It’s not just about payments right now, but these are costs that should be built into the price,” he told Yahoo Finance.
Dr Chong noted that using cash also comes with “hidden” fees, such as the costs for businesses to handle, count and bank the cash.
Joe’s Diner was contacted but did not immediately return a request for comment. ATM provider Cardtronics declined to comment.
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