Australia’s payments landscape is heading into one of its biggest structural shifts in over a decade. With the Reserve Bank of Australia (RBA) confirming that card payment surcharging will be removed from 1 October 2026, four major card schemes, eftpos, Visa, Mastercard, and American Express, have now publicly aligned with the reform.

For merchants, this marks the beginning of a new operating environment where the cost of card acceptance will need to be managed differently. Below is a clear overview of what each scheme has announced, what changes are coming, and what businesses should be preparing for.

From 1 October 2026, all major schemes will prohibit surcharging, unless a specific law or regulation allows it. This means merchants will no longer be able to pass on card acceptance costs directly to customers at checkout.

This shift aims to simplify the customer experience, reduce payment friction, and create a more consistent national approach to card acceptance.

Australian Payments Plus (AP+), the operator of eftpos, has confirmed that a zero-surcharge limit will apply to all eftpos transactions from 1 October 2026.

Key points from AP+’s announcement:

• A zero-surcharge limit will apply to eftpos transactions from 1 October 2026

• Existing surcharging rules remain in place until that date

• AP+ has formally notified acquiring members ahead of implementation

• The change aligns with the RBA’s broader review of merchant payment costs and the upcoming surcharge ban

Competition & Least-Cost Routing (LCR)

As Australia’s domestic debit network, eftpos continues to play a central role in supporting competition, particularly through least-cost routing (LCR).

Most Australian debit cards can be processed through more than one network. When LCR is enabled, businesses can choose the lowest-cost routing option, helping reduce acceptance costs.

The RBA has long supported LCR, and its data shows that the cost of accepting debit transactions is nearly 20% lower for merchants with LCR enabled.

eftpos has also reduced its own fees multiple times in recent years, reinforcing its focus on lowering the cost of payments in Australia.

Merchants wanting to understand how the changes impact their business should speak with their bank or payment service provider.

Learn More: eftpos Changes

Visa has also flagged additional changes taking effect on the same date, including updates to:

• Interchange programs

• Credit, debit, and commercial card structures

• Recurring payment rules

• Convenience fee frameworks

• New consumer debit product tiers

These updates suggest that Visa is using the reform as an opportunity to modernise its broader product and pricing architecture.

Learn More: Visa Changes

American Express has also confirmed it will:

• Support the RBA’s recommendation

• Update its Terms and Conditions for Card Acceptance by 1 October 2026

• Work closely with merchants and partners to support a smooth transition

A Notable Market Consideration

Amex acceptance costs have historically been higher for many merchants compared with Mastercard. With surcharging removed, merchants will need to decide whether to:

• Build Amex acceptance costs into overall pricing

• Absorb the cost as part of doing business

• Reassess their Amex acceptance strategy

This raises a strategic question: Will merchants who accept Amex become less price-competitive than those who don’t?

PayNuts is committed to supporting merchants through this transition in every way we can. With surcharging removed from October 2026, payment costs that were previously recovered at the point of sale will now need to be managed differently—whether absorbed within the business, incorporated into pricing, reduced through cost optimisation, or balanced through a combination of these approaches.

For any merchant impacted by the upcoming changes, our team is ready to provide tailored guidance and practical support. If you’d like help reviewing your current setup or planning your next steps, simply reach out and we’ll work with you to navigate the transition confidently.

To explore next steps, you can connect with us about merchant support or request pricing strategy guidance.