That’s according to The Milkbar owner Kritee Yogi.
The News spoke to several local cafés after the Reserve Bank banned businesses from passing on credit card surcharges.
Miss Yogi said her business had decided not to pass on the additional cost, fearing it would turn away customers.
However, this decision will significantly impact her business, which is operating on what she says are the tightest margins ever.
“If we increase the price it will turn away customers,” she said.
Already she’s noticing changes to consumer habits due to the cost of living.
“They are definitely coming less, and when they do come they are sticking with share plates,” she said.
Europa Deli & Cafe owner Joe Mallamaci has noticed a similar trend.
“Instead of coming in every day they come in two or three times a week,” he said.
He considered charging the credit card surcharge before opting not to, having recently introduced a fuel levy to cope with rising product costs.
“To try and charge customers both would knock us around,” he said.
Not having a surcharge costs him an estimated $12,000 a year.
Elsewhere At Sam co-owner Jono Chan describes the removal of card surcharges as “a cost all businesses need to consider”.
He said the change was part of the reason they recently increased prices.
“This is just another consideration on top of many already,” he said.
While Mr Chan understood the reasoning behind the Reserve Bank’s decision, Miss Yogi and Mr Mallamaci called on it to reconsider.
“The government has to look after small businesses,” Miss Yogi said.
Mr Mallamaci said the banks should not be charging the card fees.
“They’re still allowed to charge us, but we aren’t allowed to charge the customer,” he said.
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