Card Surcharge Ban 2026: What It Means for Your Business
From 1 October 2026, the card surcharge ban comes into effect across Australia. It changes how businesses can charge customers who pay by debit or credit card. The Reserve Bank of Australia (RBA) confirmed the change in its Conclusions Paper on merchant card payment costs and surcharging, released in March 2026. If your business currently adds a surcharge for card payments, this affects you directly. So here’s what you need to know, and what to do before the deadline.
What the RBA has actually decided
The RBA’s Payments System Board has made its call. Surcharging on debit and credit cards will end from 1 October 2026. This covers payments on the eftpos, Mastercard and Visa networks. On the same date, banks and payment providers also face lower caps on interchange fees. That’s the per-transaction fee they charge businesses every time a customer taps a card. Full detail is set out in the RBA’s Conclusions Paper on merchant card payment costs and surcharging.
A second round of changes follows on 1 April 2027. This stage covers fee caps for foreign-issued cards. It also brings new transparency rules, so card networks and large acquirers must publish their fee structures. The RBA staged the reform this way. It wants to give the payments industry time to make the more complex changes.
Why the change is happening
The RBA says surcharging no longer does its job. It was meant to steer customers toward cheaper payment methods. In practice, though, enforcement has proven difficult. Many businesses simply charge a flat surcharge, no matter which card the customer uses or what it actually costs to process. Australians currently pay an estimated $1.2 billion a year in card surcharges. The RBA expects that figure to fall once interchange fee caps come down. In fact, small businesses should benefit the most, because their fees already sit closer to the caps than larger businesses’ fees do.
What the card surcharge ban means for your business
Do you currently add a surcharge at the till, at online checkout, or on your invoices for card payments? You’ll need to remove it by 1 October 2026. Card acceptance costs won’t disappear, though. So most businesses will need to build these costs into everyday pricing instead. Think of it the way you already handle delivery fees or packaging costs.
In particular, one nuance is worth flagging here: the RBA’s ban names eftpos, Mastercard, Visa and American Express specifically. It doesn’t clearly address Diners Club or buy-now-pay-later services. If you accept any of these, check with your payment terminal or software provider. Ask exactly how they’ll treat surcharging on those methods from October.
Preparing your business for the deadline
A few practical steps are worth starting now, well ahead of the card surcharge ban taking effect:
- Ask your payment terminal or point-of-sale provider how they’ll update your surcharge settings, and when.
- Recalculate your margins as if surcharge revenue has already disappeared, so you’re not caught short later.
- Update invoice templates, website checkout pages and any recurring billing set-ups that mention a card surcharge.
- Confirm how your provider will treat Diners Club and BNPL payments.
- Talk to your accountant or bookkeeper before you change your pricing. This keeps the change accurate in your GST reporting and profit and loss.
What to tell your customers
Don’t just quietly fold the surcharge into your prices. A short heads-up goes a long way. So put up a sign at the counter, add a line to your website, or send a note to regular customers before the change lands. Explain that it follows a national RBA rule, not a decision your business made alone.
This actually works in your favour. Because every business on these card networks faces the same deadline, customers are likely to see the same change everywhere they shop. So a clear, early explanation should head off most pushback.
Key dates at a glance
- 1 October 2026 — Surcharging ends on eftpos, American Express, Mastercard and Visa debit and credit cards. Domestic interchange fee caps drop at the same time.
- 1 April 2027 — Interchange fee caps extend to foreign-issued cards. Card networks and large acquirers must publish their fee structures.
Need help preparing?
Would you like help reviewing your pricing, cash flow or payment processes before the deadline? Get in touch with the WL Advisory team. We’re always happy to talk through your options.