Single photo exposes why many Australians are concerned about a cashless society

A shop sign pointing out transaction fees for card purchases has sparked calls to 'use cash' or risk losing it and paying increasingly high fees to the banks.

The sign, spotted by Nathan Priestley, was posted on the Facebook group Cash is King with the caption: “This is why we need to use cash $$$.”

“Unfortunately, due to the rising costs of credit/debit cards and Eftpos cards, we will be imposing a surcharge on all card transactions,” the sign reads.

“The surcharge will not exceed (and help us cover) our costs of accepting CADs as a form of payment.”

It goes on to explain that a Mastercard credit card will have a surcharge of 1.56 percent of the purchase price added, while 1.07 percent will go on branded debit cards.

Visa users are charged a 1.67 percent surcharge for credit card use and 0.74 percent for debits, while EFTPOS users are charged an additional 0.24 percent.

Mr Priestly told Daily Mail Australia on Wednesday the sign was not chosen by any particular store but was often seen in stores in his area.

He said cash was his preferred means of payment because it provided less benefit to banks.

“I always try to do that because the bank charges are a joke,” he said.

'They charge interest on the money you have in the bank, and every time you use your card the banks cheat everyone blind.

A number of social media users argued that Australians should use cash or risk losing it

“So if we can use cash, the bank doesn't get the money from the fees.”

Facebook users agreed.

'Why would you want to make banks richer?' one response requested.

'Really, people wake up to yourself. Cash is king, keep using it.”

“Yes, and if they take our money, they will increase those fees whenever they want,” another warned of the banks.

“Boycott companies that refuse to accept legal tender,” urged another.

“You have a choice too!”

On the other side of the counter, a business owner explained the situation they are in.

“I run a small business, we used Square to take Eftpos last year, it cost us 40,000 in fees, we just can't absorb the costs. Cash is king,” they wrote.

Eftpos machines are provided by the bank for a monthly service fee, while a separate fee is charged for each transaction.

In April, a payments expert called the bank's fees, especially for contactless payments, “outrageous.”

“I think tap and go has a lot to answer for,” Tim Wildash, CEO of Next Payments, told Seven News.

'It is of course very convenient, but also very expensive. Every time you tap and leave, you're completely open to being used in the way the banks want you to be used, and that's through the schemes so they can make more money.”

When a customer uses tap-and-go, banks charge a fee that varies from 1.1% to 2 percent of the purchase price, while Eftpos charges a maximum fee of .5%.

Matthew Addison, chairman of the Council of Small Business, said the solution was for banks to help businesses install payment machines that automatically applied the cheapest possible routing system, making buying as cheap as possible.

“The banks really need to get behind this and make it simple for businesses and easy to understand,” Mr Addison said.

“If we can keep the cost of doing business low, it means the company doesn't have to raise its prices.

“Costs are rising and this is a way that comes at no cost to the government and no cost to the budget to enforce a system that saves costs for small businesses.”

Mr Wildash advised consumers to check how much they had to pay to use their own money by looking at receipts.

“I think consumers will be surprised when they find out how much they are paying through the payment system,” he said.

He advised savvy consumers to check if they have the Eftpos logo on the back of their card.

“If they do (have), they can actually start claiming using Eftpos,” he said.

“They have to put the card in and choose 'save' and that gives them the opportunity to save 1.9% every time.”

However, there was still only one particular way to avoid all costs.

“The best way is cash, there is no surcharge on cash,” Mr Wildlash said.