No Surcharge Rule - FAQ's
1. What is changing?
The RBA has announced that businesses will no longer be allowed to apply surcharges on debit, prepaid and credit card payments made through eftpos, Visa and Mastercard networks from 1 October 2026.
2. Why remove card surcharges?
According to the RBA, surcharging is no longer achieving its original purpose of encouraging customers to choose lower-cost payment methods. The RBA found that surcharges are often difficult for customers to avoid, can be confusing, and are not always clearly disclosed.
3. Will payment processing costs disappear?
No. Businesses will still pay fees to accept card payments. However, the RBA is also reducing interchange fee caps and introducing other reforms aimed at lowering card acceptance costs, particularly for small businesses.
4. Does this mean card payments are free for businesses?
No. Businesses will continue to incur payment acceptance costs. The reform changes how those costs are handled and displayed to customers, while also aiming to reduce the overall fees businesses pay.
5. How will businesses recover payment costs?
Businesses will need to decide how they manage payment costs. Some may absorb the costs, while others may review and adjust their overall pricing. The cost of accepting cards remains, but separate card surcharges will no longer be allowed for covered card types.
6. What support is available for merchants?
The RBA is introducing measures to improve transparency in merchant payment costs. Card schemes and large payment providers will be required to publish fee information, making it easier for businesses to compare providers and negotiate better deals.
7. What has been announced about fee transparency?
As part of the reforms, eftpos, Visa and Mastercard will be required to provide greater transparency around the fees they charge. This is intended to make it easier for merchants to compare providers, negotiate pricing and find better-value payment solutions.
8. What about American Express (Amex)?
Yes. Although the surcharge ban only applies directly to Visa, Mastercard and eftpos from 1 October 2026, American Express has confirmed it will also prohibit merchants from surcharging Amex transactions from 1 October 2026.