Card Surcharges will be banned from 1 October 2026: What Small Businesses Need to Know
By Tina Zawila
The Reserve Bank of Australia (RBA) has announced significant changes to how card payments are regulated, with card surcharges on eftpos, Visa and Mastercard transactions to be banned from 1 October 2026.
This reform follows an extensive review of merchant card payment costs and is designed to simplify pricing and improve transparency for consumers.
For many small businesses, particularly in retail and hospitality, card surcharges have been a way to recover merchant service fees by adding them to the transaction amount at the point of payment. Once the new rules take effect, this will no longer be permitted. The price shown to customers will need to be the final price they pay, regardless of whether they choose to pay by card.
Importantly, this does not mean that merchant fees disappear. Businesses will still incur costs for accepting card payments. However, these costs will need to be absorbed into overall pricing, margins or operating costs rather than passed on as a separate surcharge at the checkout.
To balance this change, the RBA is also reducing the caps on interchange fees —the fees charged by banks and card networks to process card payments. Small businesses are expected to benefit the most from these reductions, as they typically pay fees closer to the current maximum rates. Greater transparency requirements will also make it easier for businesses to compare providers and negotiate better merchant agreements.
While the changes are not immediate, now is a good time for business owners to review their pricing models, understand their true cost of accepting card payments, and speak with their payment providers about fees.
As with many regulatory changes, the key is planning ahead. With the right adjustments, businesses should be able to adapt smoothly and continue to operate profitably in an increasingly cash-free economy.
If you would like to discuss how these changes may affect your business or review your pricing strategy, please call the professional team at UHY Haines Norton CQ Pty Ltd on 4972 1300.
