Local retailers have given mixed reviews as the feedback period for public comment on the draft proposal by the Reserve Bank of Australia (RBA) to end card surcharges draws to a close.

The bank wants to allow payment services like Visa, Mastercard and EFTPOS to ban businesses from charging surcharges to cover electronic transaction costs. 

The RBA says the move would save the average Australian $60 a year, but Coonamble café owner Ahmad 'Al' Karanouh says menu prices would rise.

"It's not going to be $12.18," Mr Karanouh said, referring to this reporter's go-to chicken and avocado sandwich as an example.

"I'm going to raise it to $12.50 to round it up.

"The only loser in the end is the customer."

The RBA introduced a prohibition on surcharge bans for credit and debit cards in 2003.

It was intended to steer customers towards cheaper payment methods, although a review released by the bank on 15 July found the policy is no longer fit for purpose.

The review made 11 policy proposals including reducing the cost banks charge payment services during electronic transactions, which is typically passed onto businesses.

The RBA also proposes requiring payment providers to publish more information on the fees they charge.

Owner of Cobar and Coonamble service stations, Robert Kirby said his outlets don't pass on transaction costs.

"Just pure bank transaction operating charges, if you like, they constitute about 11 per cent of our non labour costs," Mr Kirby said.

"Anything that pushes them down is good, but whether the banks then might want to up their margins on interest or some other ways of maintaining their income, I don't know."

Submissions are open until tomorrow 26 August for the review's consultation paper.

The federal government has said they are prepared to ban all surcharges on debit cards from 2026, subject to the RBA review.

The bank expects to deliver a final proposal by the end of 2025.

The proposed surcharge ban drew criticism from Australian Restaurant and Café Association CEO Wes Lambert.

“Restaurants are not banks. We do not have the luxury of absorbing thousands of dollars in hidden transaction costs,” Lambert said.

“We urge the government and RBA to abandon this proposal immediately."