RBA to Ban Card Payment Surcharges from October 2026
The Reserve Bank of Australia (RBA) has confirmed that from 1 October 2026, businesses will no longer be allowed to charge surcharges on credit and debit card payments made through EFTPOS, Mastercard, Visa, and related payment networks. In recent years, this has been considered one of the biggest changes to Australia’s payment system and will impact both businesses and consumers.
Why this matters
Currently, Australians pay around $1.6 billion each year in card surcharges. At the same time, businesses pay high costs to accept card payments. Under the new rules, total payment costs for businesses may fall by around $910 million per year, with small businesses likely to get benefits. For many businesses, these changes will mean:
- Simpler pricing
- Less administration and compliance work
- Potential savings and improved profit margins
However, businesses should start preparing now to ensure a smooth transition.
What’s changing?
The RBA’s reforms include three major changes:
1. Card surcharges will be banned
Businesses won’t be able to add any surcharge from 1 October 2026, whether a percentage fee or a fixed amount, for payments made using EFTPOS, Visa, Mastercard, or related networks. Customers must be charged a single final price, whether they are paying:
- In-store
- Online
- Through a mobile payment method
2. Lower interchange fees
Interchange fees are the fees banks charge each other when customers make card payments. The RBA will reduce these fees and present new limits on fees for foreign-issued cards. This should reduce the cost for businesses to accept card payments.
3. More transparency around fees
Card schemes, banks and payment service providers will need to disclose their margins and fees more clearly and show clearly how the decrease in wholesale rates is being relayed to the businesses. For businesses, this should provide easier options for:
- Compare providers
- Understand their costs
- Negotiate better deals
These reforms will be supported by oversight from the ACCC and guidance from the Australian Small Business and Family Enterprise Ombudsman.
What should your business do now?
1. Review your merchant fees
Take a closer look at your most recent merchant statements and figure out:
– How much are you currently paying in card acceptance fees?
– Are you currently recovering some of those costs with surcharges?
If you are charging surcharges, you will probably have to re-evaluate your pricing to remain in the black.
2. Talk to your payment provider
With reduced interchange fees on the way and high fee transparency being presented, now is the right time to discuss:
- Lower merchant service fees
- Better pricing plans
- Point-of-sale (POS) or terminal upgrades
Small businesses often pay fees closer to the current maximum limits, so they may benefit the most from negotiating better arrangements.
3. Update your pricing and payment systems
You’ll need to remove:
- In-store surcharge signs
- Online checkout payment surcharge
- Card payment add-on
All advertised prices and posted prices will need to have a payment add-on priced into the total.
4. Factor the changes into your cash flow planning
While fee reductions won’t happen overnight, many businesses should start seeing lower payment costs during the 2026–27 financial year. This is the time to review forecasts and budgets, especially for:
- Cafés
- Retailers
- Trades businesses
- Service-based businesses
These industries often process a high number of smaller card transactions and may see noticeable savings.
5. Monitor customer payment habits
The removal of surcharges may encourage more customers to pay by card. While increased card usage can improve convenience and speed at checkout, businesses should continue monitoring their payment costs to understand the overall impact.
The bigger picture
These reforms help to create a fairer and more competitive payments environment. Businesses that have never charged surcharges will benefit from lower underlying payment costs. Businesses that currently apply surcharges will gain:
- Simpler pricing structures
- Less administrative work
- Reduced compliance risk
Over time, increased competition among payment providers may also lead to:
- Better payment products
- More competitive pricing
- Lower fees for businesses
There may be some flow-on effects, such as banks reviewing rewards programs, but the combined efforts of the RBA and ACCC are intended to ensure cost savings are passed on fairly and transparently.
Final thoughts
Overall, these changes should make card payments simpler for both businesses and customers. Customers will see clearer pricing with no surprise fees at checkout, while businesses can benefit from lower complexity and potentially lower payment costs. Some businesses may also see an opportunity to improve margins, streamline operations, and enhance the customer experience. We recommend reviewing your payment arrangements over the coming months.