The big banks are split on the way forward for Australia’s controversial payment surcharging system as consumer complaints about businesses recovering more than their fair share of transaction fees surge.

Commonwealth Bank has urged the Reserve Bank to outlaw the practice as part of the RBA’s review of Australia’s payments framework to ensure the system is fit for purpose. The Labor government wants to ban surcharges on debit card purchases ahead of a federal election where cost-of-living pressures are top of voters’ minds.