Fee building blocks, pricing models and 2026 rules
Card surcharges removed from 1 October 2026: what Australian merchants must do
The RBA decision that ended surcharges on eftpos, Mastercard and Visa cards, who enforces it, what fees are still allowed, and a step-by-step plan for businesses that used to surcharge.
Since 1 October 2026, Australian businesses cannot add a surcharge to payments made with debit, prepaid or credit cards on the eftpos, Mastercard or Visa networks, whether the card is tapped, inserted, stored in a wallet or used online, and including cards issued overseas. The Reserve Bank of Australia (RBA) did this by lifting its long-standing prohibition on "no-surcharge" rules, and the three networks then applied their own rules prohibiting surcharging. According to the RBA's FAQs, American Express and UnionPay have also removed surcharging, and PayPal's rule took effect on 5 October 2026. The networks, not the RBA, enforce compliance. Card acceptance costs now have to be absorbed or built into your prices.
This guide is part of the overview of merchant payment processing fees. It summarises the RBA's published conclusions and FAQs; check the RBA site and your provider for any later changes.
What changed, and how
From 2003 the RBA's standards stopped card networks from preventing merchants from surcharging, and from 2016 a surcharge had to be no more than the merchant's cost of acceptance. The ACCC was given powers to act against excessive surcharges in Part IVC of the Competition and Consumer Act 2010 (sections 55 to 55N).
In its Conclusions Paper of 31 March 2026, the RBA's Payments System Board found that the framework was no longer achieving its purpose: many businesses surcharged all cards at one rate, enforcement was difficult and cash, the usual surcharge-free option, was less widely used. Its decision, implemented through a variation of RBA Standard No. 3 of 2016, was to:
- remove the prohibition on no-surcharge rules for the designated networks (eftpos, Mastercard and Visa), from 1 October 2026;
- remove the exclusion for taxi fares paid with designated network cards (state and territory taxi rules still apply);
- lower interchange caps on domestic cards from the same date, so that business costs fall as surcharges end.
The RBA also said that if surcharging continued, the Government could legislate a ban.
What is and is not a card surcharge
| Charge | Allowed from 1 October 2026? | Notes |
|---|---|---|
| Extra % or $ for paying by eftpos, Mastercard or Visa card | No | Network rules prohibit it, unless a network exception applies |
| Extra charge for American Express, UnionPay, PayPal | Generally no | These have removed surcharging; check each network's current rules |
| Discount for paying by cash, bank transfer or another method | Yes | Price displays must still be clear and not misleading |
| Weekend or public holiday surcharge | Not covered by the card change | Separate pricing decision; must be displayed clearly |
| Booking, service or delivery fee | Not covered by the card change | Must not be a disguised card surcharge and must be disclosed |
| Surcharge on non-card methods (e.g. some account-to-account payments) | Not regulated by the RBA | ACCC pricing rules apply; check your provider's terms |
Fees your provider charges you, such as terminal rental and transaction fees, are service fees, not surcharges, and are not affected.
A step-by-step plan for businesses that used to surcharge
- Confirm the surcharge is off. The RBA notes many payment providers planned to disable surcharging on terminals around 1 October 2026. Check your terminals, online checkout, invoicing software and payment links, including any "pass on fees" setting.
- Update signs and price lists. Remove card surcharge notices at the counter, on menus, websites and quotes.
- Check invoices. An invoice issued before 1 October 2026 but paid on or after that date may not be able to carry a surcharge. Ask your provider and reissue if needed.
- Work out your true card cost. Divide last month's total card fees (including rental) by card takings. The card fee calculator does this.
- Decide how to absorb it. Options are a lower-cost plan, a general price adjustment, a discount for cheaper payment methods, or a mix. See repricing after the surcharge ban.
- Ask for the interchange saving. Lower caps applied from 1 October 2026. Ask your provider in writing how your rates changed. See interchange caps.
- Review in three months. Compare statements before and after, and get at least one competing quote with the quote checklist.
Who enforces it
The RBA's FAQs say card networks are responsible for compliance with their no-surcharge rules. Customers can raise concerns with the business or report it to the network shown on the receipt. A business that keeps surcharging risks action under its merchant agreement and network rules, which can include losing the ability to accept that network's cards.
Misleading price displays remain a matter for the ACCC and state and territory consumer protection agencies under the Australian Consumer Law. For example, a discount presented as a "surcharge-free price" while the shelf price quietly includes a card premium could raise misleading conduct issues. Part IVC of the Competition and Consumer Act remains in the Act; how it applies after the standard was varied depends on the RBA standard and any regulations, so check ACCC guidance if you still apply charges to payment methods not covered by the network rules.
Exemptions and special cases
- No general exemption. The RBA says businesses, including not-for-profits, are not exempt unless the network rules or the law provide one. Exemptions are for networks to decide.
- Business-to-business payments are not automatically exempt.
- Regulated prices. Some businesses cannot change their prices quickly; the RBA has informed governments and price regulators.
- Taxis. Surcharging on taxi fares remains a matter for state and territory regulators and legislation.
The networks publish joint FAQs on their no-surcharge rules at cardsurcharge.com.au, as referenced in the RBA's FAQs.
Can I stop accepting cards?
Generally yes, but the RBA notes that some businesses must accept cash under the ACCC-administered cash acceptance codes, which since 1 January 2026 have applied to many supermarkets and fuel retailers, with an exemption for most small businesses with turnover below $10 million. Check your provider's terms before removing a card type, and remember that discounts for cheaper methods are an alternative way to steer customers.
Frequently asked questions
Can I add a surcharge to an overseas customer's Visa card?
No. The network rules prohibit surcharging on Mastercard, Visa and eftpos cards generally, including internationally issued cards.
Can I set a minimum card spend instead?
The RBA's FAQs do not address minimum spends. Minimum spend rules are a matter for your provider and the network rules; check your merchant agreement before introducing one.
I sell online only. Does the ban apply?
Yes. It applies to card payments in every channel, including online and in-app payments.
Does the change affect buy now pay later?
BNPL services are outside the RBA's card standards. The RBA began a separate Review of Payments System Regulation on 25 June 2026, with questions on mobile wallets, non-designated card networks and BNPL; it intends to publish a list of regulatory priorities by the end of 2026. Check your BNPL agreement for its own rules.
Sources
- Reserve Bank of Australia — media release and Conclusions Paper of 31 March 2026, FAQs on the removal of payment surcharges
- Federal Register of Legislation — Competition and Consumer Act 2010, Part IVC, and the RBA standards
- Australian Competition and Consumer Commission — price displays, payment methods and cash acceptance codes
- Australian Small Business and Family Enterprise Ombudsman — help for small businesses adjusting prices
