Card Surcharge Ban in Australia: Updated Guide for Businesses

From 1 October 2026, businesses in Australia can no longer add a surcharge when a customer pays with an eftpos, Mastercard or Visa card. That covers debit, credit and prepaid cards, whether the customer taps a physical card, pays with a phone or watch, or checks out online. If your terminal, website or invoices still add a card fee, now is the time to switch it off.

Below we explain what was decided, what is still allowed, and the practical steps small business owners should take. We have only included details we could confirm from the Reserve Bank of Australia (RBA). Where something is still being worked out, we say so.

What the RBA Decided

In March 2026 the RBA published the conclusions of its Review of Merchant Card Payment Costs and Surcharging. Its Payments System Board found that surcharging was no longer doing its original job of steering customers towards cheaper ways to pay. Fewer people use cash, and many businesses were charging the same surcharge on debit and credit cards, which made surcharges hard for customers to avoid.

The Board decided to remove surcharging by lifting its long-standing prohibition on card networks' "no-surcharge" rules. In practical terms, eftpos, Mastercard and Visa each introduced no-surcharge rules from 1 October 2026. Those rules apply to all credit, debit and prepaid cards on these networks, including cards issued overseas.

The RBA also notes that American Express, UnionPay and PayPal have decided to remove surcharging, with PayPal's rule taking effect from 5 October 2026.

What Is Still Allowed

The change targets fees added because a customer pays by card. According to the RBA, it does not apply to:

A simple test: if the fee only appears because the customer chose to pay by card, treat it as a card surcharge and remove it. If you still charge a weekend or public holiday surcharge, make sure it is displayed clearly and up front so customers aren't caught by surprise at the counter.

You can also still offer a discount for paying in a cheaper way, such as cash. The RBA has said its policy is not intended to stop businesses offering discounts for particular payment methods. For surcharges on non-card payment methods, the RBA suggests talking to your payment provider and checking the ACCC's guidance on displaying prices.

Who Enforces the New Rules

No-surcharge rules are set by each card network, and the RBA says the networks are ultimately responsible for making sure businesses comply. Customers who are charged a card surcharge can report it to the relevant card network.

The RBA has also been clear that it is watching. If surcharging continues, which it describes as counter to the spirit of the reforms, the RBA could recommend that the Government legislate a ban. Ignoring the change is not a sensible option.

Other Changes That Affect Your Merchant Fees

Surcharging was only one part of the review. The RBA also decided to:

• Lower interchange fee caps on domestic debit and consumer credit card payments from 1 October 2026. Interchange is the wholesale fee that flows to the cardholder's bank, and it is one component of what you pay your provider. The RBA expects small businesses to receive a bigger reduction than large businesses.
• Require more transparency. eftpos, Mastercard, Visa and large acquirers must publish the fees they charge, with the first publications due by the end of October 2026.
• Cap interchange on foreign-issued cards and introduce enhanced merchant statements from 1 April 2027.

Lower wholesale costs only help you if your provider passes them on. The RBA has said it will closely monitor pass-through and highlight acquirers that don't pass the savings on to merchants, but it still pays to check your own statements over the coming months.

Your Surcharge Ban Checklist

1. 1

   Switch off card surcharging everywhere.

   Check every EFTPOS terminal, your POS, online checkout, payment links, invoicing software and any recurring billing. Ask your provider to confirm in writing that surcharging is disabled on your account.

2. 2

   Update your signage and paperwork.

   Remove card surcharge notices from counters, menus, your website, receipts, quotes and terms and conditions.

3. 3

   Review your pricing.

   The RBA's guidance is that payment costs can be reflected in your overall pricing rather than charged as a separate fee. Look at how much your surcharges recovered over the past year, compare it with your total sales, and decide whether a small, across-the-board price adjustment is needed.

4. 4

   Work out your real cost of acceptance.

   Add up all the fees on your merchant statement and divide by your total card sales. That effective rate is the number to compare between providers, not a headline rate on a brochure.

5. 5

   Check your plan and shop around.

   The RBA encourages businesses to review whether they are on the best plan and to compare providers. With interchange caps falling, ask your provider how the reductions are being passed through to you.

6. 6

   Ask about least-cost routing.

   Routing dual-network debit cards through the cheaper network can reduce your costs. Our guide to least-cost routing explains how it works.

7. 7

   Brief your staff.

   Make sure your team can explain the change if a regular customer asks why the card fee has disappeared or why prices have moved.

What Is Still Uncertain

A few things are not settled yet, and we will update this guide as they become clearer:

• How much of the interchange reduction reaches each business. This depends on your provider and your pricing plan. Large acquirers are due to start reporting on pass-through in early 2027.
• Further regulation. The RBA has said it will consult on parts of the payments system that this review didn't cover, including mobile wallets, three-party card networks such as American Express, buy now pay later services and e-commerce platforms.
• Legislation. Whether the Government is asked to legislate a ban depends on how well the network rules work in practice.

How KBServices Can Help

If you're not sure whether surcharging is still switched on somewhere in your setup, or you want to know whether you're paying more than you should, we can help. Send us a recent merchant statement and we'll compare your costs and explain your options in plain English. Our team is available Monday to Friday, 9am to 5pm, and Saturday, 9am to 1pm.

See how much you could save, contact our team or call us on 1300 578 527.