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Following a review, the Reserve Bank of Australia (RBA) concluded that removing surcharges is in the public interest and will deliver a simpler, more transparent payment experience for consumers.
The end of card surcharges is more than a change at the checkout, it is a prompt for businesses to rethink how they price and recover the cost of accepting payments. So, how can you prepare?
What's changing?
From 1 October 2026, the major card networks operating in Australia will introduce "no surcharge" rules. This means businesses will no longer be able to charge customers an additional fee for paying by credit card, debit card or prepaid card through participating networks.
The surcharge ban will apply to:
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eftpos
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Visa
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Mastercard
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American Express
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PayPal
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UnionPay
For customers, the change means the price displayed will be the price they pay, regardless of how they choose to pay.
Importantly, these changes only relate to card payment surcharges. Other fees, such as weekend surcharges, public holiday surcharges, booking fees and service fees, are not affected.
Will businesses have to absorb the cost?
Not necessarily.
While businesses will continue to incur costs when accepting card payments, those costs can still be incorporated into overall pricing rather than added as a separate line item at the point of sale.
For many businesses, this will mean reviewing pricing models and determining how payment processing expenses fit within broader operating costs. While some businesses may choose to adjust prices, others may find opportunities to offset these costs through operational efficiencies or better payment arrangements.
The RBA has also introduced reforms aimed at reducing merchant payment costs, including lower interchange fee caps and greater transparency around card payment fees.
What should businesses do now?
With the changes now in effect, it is important to review how your business handles payments and recovers processing costs.
Some practical steps include:
Review your merchant fees
Take a closer look at your payment processing costs and understand exactly what you're paying for. Many businesses are surprised to discover they have not reviewed their merchant facility for several years.
Compare providers
Shopping around could result in lower transaction costs, better service or more suitable pricing structures. The end of surcharging creates an even stronger incentive to ensure you're getting value from your current payment provider.
Understand your payment mix
Knowing how customers prefer to pay can help you better forecast the impact of the changes and make informed decisions about pricing and payment acceptance.
Consider incentives instead of surcharges
While surcharges are being removed, businesses can still offer discounts for particular payment methods. For example, some businesses may provide discounts for direct bank transfers or other lower-cost payment options.
Are there any exceptions?
At this stage, businesses generally won't be exempt from the new rules unless a card network provides a specific exemption or one is permitted under legislation.
The changes are expected to apply broadly across industries, including business-to-business transactions.
Businesses that invoice customers prior to 1 October 2026 should also be aware that if payment is made after that date, surcharges may no longer be permitted, even if the invoice was originally issued beforehand.
What about regulated industries?
Some industries operate under regulated pricing arrangements and may have less flexibility to adjust prices. The RBA has indicated it has informed governments and pricing regulators about the changes so they can be considered in future pricing decisions.
The taxi industry remains a separate case, with surcharging arrangements continuing to be governed by relevant state and territory legislation.
The bottom line
While the removal of surcharging may require some adjustments, it also presents an opportunity to review payment arrangements, improve pricing transparency and reassess the true cost of accepting different payment methods.
We can help you understand how changes like these fit within your broader business strategy and financial planning, so you're well prepared for what's ahead. Contact a Trusted Advisor today.
With more than 20 years’ experience advising small business owners, Matthew brings deep expertise, genuine care and a practical, real‑world perspective to his role as Partner. Growing up in a family of entrepreneurs running diverse businesses, Matthew knows the challenges and opportunities facing small business owners, and how to work together to achieve the best outcomes.