From 1 October 2026, major card surcharges are disappearing across Australia. For businesses, the change means it may be time to review payment systems, pricing and the real cost of accepting card payments.
New payment rules mean businesses can no longer add a separate surcharge when customers pay using eftpos, Mastercard or Visa debit, prepaid or credit cards. American Express and UnionPay have also moved to remove card surcharging from 1 October.
The changes apply to card payments made in-store, online and through digital wallets or devices. In simple terms, if a product or service is advertised for $100, customers should generally not find themselves paying $101 or $102 simply because they chose to pay by card.
Why Has Australia Banned Card Surcharges?
The RBA estimates Australians were paying around $1.6 billion each year in card surcharges across eftpos, Mastercard and Visa. With electronic payments now the norm rather than an alternative, the RBA concluded that the existing surcharge system was no longer working as intended.
What Does the Card Surcharge Ban Mean for Australian Businesses?
For businesses, removing the surcharge doesn’t remove the cost of accepting card payments. Merchant fees, payment processing costs and terminal fees may still exist. The difference is that businesses generally can no longer pass these costs directly to customers as a separate card surcharge.
Businesses therefore need to consider how these costs affect their margins.
Options may include reviewing pricing, negotiating merchant fees, comparing payment providers or incorporating payment processing costs into overall pricing.
Businesses can also offer customers a discount for using another payment method, such as cash or PayID, rather than imposing a card surcharge.
Importantly, businesses should check their EFTPOS terminals, online checkout systems, invoices and other payment processes to ensure card surcharges are no longer being automatically applied.
Are All Surcharges Now Banned?
No. The changes specifically relate to fees charged because a customer chooses to pay by card.
Other legitimate charges can still apply, including weekend and public holiday surcharges, booking fees, delivery fees and service fees.
Businesses should, however, make sure any additional charges are clearly described and are not simply card surcharges presented under another name.
What About Credit Card Rewards and Points?
The RBA has also lowered the maximum interchange fees applying to Australian-issued cards. For consumer credit cards, for example, the maximum interchange fee has fallen from 0.8% to 0.3%.
These fees have traditionally helped fund credit card rewards and benefits, so some banks and card providers are reviewing their rewards programs, fees and benefits.
For consumers and business owners who use credit cards heavily to accumulate rewards points, it may therefore be worth reviewing whether existing cards continue to provide good value.
What Should Business Owners Do Now?
If your business previously charged customers a card surcharge, now is a good time to review your pricing, merchant fees, payment providers and profit margins.
Small percentages can add up quickly, particularly for businesses processing a high volume of card transactions.
Cashflow Financial can help businesses understand how changing payment costs affect cash flow, margins and pricing. Speak to our accounting team in Wollongong or Sutherland to discuss what the new card surcharge rules could mean for your business.
Frequently Asked Questions
1. Are credit and debit card surcharges banned in Australia from 1 October 2026?
Yes. From 1 October 2026, no-surcharge rules apply to eftpos, Mastercard and Visa debit, prepaid and credit card payments. Other major payment providers have also announced changes to remove surcharging.
2. Can businesses increase their prices to cover card processing fees?
Businesses generally remain free to set their own prices, provided they comply with Australian consumer law and do not mislead customers. This means some businesses may choose to incorporate payment processing costs into their overall pricing rather than charging them separately.
3. Can businesses still charge weekend or public holiday surcharges?
Yes. The new rules relate specifically to card payment surcharges. Legitimate weekend and public holiday surcharges, booking fees, service fees and certain other charges are not prohibited by the card surcharge changes.