Shoppers to no longer pay fees when using debit cards under new Albanese government plan

Debit cards have long been promoted as a replacement for cash but a complex system of opaque charges has created a multibillion-dollar revenue opportunity. Photograph: Fly View Productions/Getty Images

The federal government is preparing to ban debit card fees and instruct the consumer watchdog to investigate excessive card costs, as the unpopular system of transaction charges gets set for an overhaul.

The proposed changes would mean consumers no longer pay a fee when using their debit card to buy their morning coffee or make a major retail purchase. Credit card fees would still apply.