Ending Card Surcharges: What You Need to Know Before 1 October 2026
The Reserve Bank of Australia (RBA) has confirmed that all surcharges on credit and debit card payments including eftpos, Mastercard and Visa transactions will be banned from 1 October 2026.
This marks one of the most significant changes to Australia’s payments system in recent years and will affect both businesses and consumers. While the reforms are designed to simplify pricing and reduce payment costs, businesses should start preparing now to ensure a smooth transition.
Why This Matters
Australians currently pay an estimated $1.6 billion in card surcharges each year. At the same time, businesses collectively incur even higher costs for accepting card payments.
Under the new framework, merchant payment costs are expected to fall by approximately $910 million annually, with small businesses expected to benefit the most in percentage terms.
For many businesses, the reforms should deliver:
- Simpler and more transparent pricing
- Reduced compliance obligations
- Lower payment processing costs
- Potential improvements to profitability
However, businesses that currently rely on card surcharges to recover costs may need to review their pricing strategies before the new rules take effect.
What Your Business Should Do Now
1. Review Your Merchant Fees
Start by reviewing recent merchant statements to determine:
- How much you currently pay in card acceptance fees; and
- Whether surcharges have been helping recover those costs.
If card surcharges form part of your pricing strategy, you may need to consider whether adjustments to product or service pricing are appropriate to maintain profitability.
2. Speak With Your Payment Provider
With lower interchange fees and greater transparency on the horizon, now is an excellent time to review your payment arrangements.
Consider negotiating:
- Lower merchant service fees
- Alternative pricing plans
- Upgraded terminals or POS solutions
Small businesses often pay fees closer to the current regulatory caps and may therefore experience the greatest savings under the new system.
3. Update Pricing and POS Systems
Before 1 October 2026, businesses will need to remove:
- Card surcharge notices and signage
- Online checkout surcharges
- Automatic percentage-based card fees
All advertised and displayed prices will need to be inclusive of payment costs.
4. Factor Changes Into Cash Flow Planning
Although fee reductions may not be immediate, many businesses should begin seeing lower payment costs during the 2026–27 financial year.
This presents a good opportunity to revisit budgets and cash flow forecasts, particularly for businesses with a high volume of low-value card transactions, such as:
- Cafés and hospitality venues
- Retailers
- Trade businesses
- Professional and service-based firms
5. Monitor Customer Behaviour
The removal of card surcharges may encourage more customers to pay electronically.
While increased card usage can improve convenience and transaction speed, businesses should continue monitoring total payment acceptance costs as customer behaviour evolves.
Final Thoughts
The end of card surcharges is ultimately designed to deliver simpler pricing for consumers and lower complexity for businesses.
For many businesses, the reforms may create opportunities to:
- Improve profit margins
- Streamline payment processes
- Enhance the customer experience
- Review existing banking and merchant arrangements
We recommend reviewing your payment systems and merchant agreements well before the 1 October 2026 commencement date.
Our team can help analyse your current merchant fees, assess the likely financial impact of the reforms, and assist with evaluating alternative payment solutions.