Card surcharges to end from 1 October 2026: What this means for businesses
The Reserve Bank of Australia (RBA) has announced a significant change to the payments landscape: from 1 October 2026, card surcharging will be prohibited for all designated card networks, including eftpos, Mastercard, Visa and debit, and prepaid cards. This reform is a part of the RBA’s Review of Merchant Card Payment Costs and Surcharging aimed to simplify payment processes, reduce costs for merchants, and enhance transparency.
The reform will have widespread implications, particularly for sectors where card payments are the default method of payment and will require early planning by affected businesses.
This briefing outlines what will change, and the key steps businesses should take now to prepare.
What will change from 1 October 2026?
Businesses will no longer be permitted to add a surcharge at the point of card payment. Instead, the cost of accepting card payments will need to be absorbed into the advertised price of goods and services.
At the same time, the RBA will reduce interchange fee caps, with a particular benefit for small merchants. These reductions are intended to help offset the impact of businesses absorbing card payment costs.
Implications for businesses
Compliance simplification
The removal of surcharging will eliminate the need to calculate and disclose surcharges, reducing administrative and compliance burdens.
Competitive pressure
With surcharging removed, merchants will be better positioned to compare payment service providers (PSPs) and seek lower-cost arrangements. New transparency requirements introduced by the RBA are intended to make fee comparisons easier.
Discounting permitted
Although surcharging will be banned, businesses may continue to offer discounts for preferred payment methods, such as cash or account-to-account payments. This preserves some flexibility to encourage lower-cost options.
What businesses should be doing now?
Conduct contractual reviews
Review contracts with PSPs to understand current fee structures and how surcharging is addressed. Merchants should assess whether fees are competitive, compare alternative providers, and benchmark costs against available industry data.
Budget and plan for fee changes
Businesses should factor the forthcoming interchange fee reductions into their budgets and ensure these savings are passed on by PSPs through lower merchant service fees.
Prepare for operational communication changes
Clear communication will be critical during the transition. Businesses should update signage, terms and conditions, websites, receipts, and staff training materials to reflect the move to all-inclusive pricing and ensure staff can confidently explain the changes to customers.
Consider strategic opportunities
The reforms create renewed incentives to steer customers toward lower-cost payment methods. Businesses may wish to explore targeted discounts, revised pricing structures, or customer education initiatives to manage payment costs effectively.
Stay informed
The RBA has indicated that further amendments and guidance will follow as PSP technology is updated. Businesses should monitor regulatory developments and industry guidance as the implementation date approaches.
Conclusion
The end of card surcharging represents a significant shift for Australian businesses. While it will require careful planning, and a review of payment service arrangements, the reforms are designed to simplify compliance, strengthen competition, and improve the customer experience.
Businesses that begin preparing early — by reviewing costs, engaging with PSPs and updating communications including terms and conditions — will be best placed to manage the transition smoothly.
Our Corporate and Commercial team advises businesses on the legal and regulatory implications of the RBA’s surcharge reforms and can assist with compliance readiness, contract reviews, and risk management.
