A change is coming to the way Australian businesses accept card payments, and the deadline is closer than it might feel.
From 1 October 2026, surcharges on credit and debit card payments across eftpos (electronic funds transfer at point of sale), Mastercard, and Visa will be banned entirely. Whether you run a café, a trade business, a retail store, or a service-based operation, if you currently pass card fees on to customers, now is the time to prepare.
This is one of the most significant updates to Australia's payments landscape in years. Here is what it means and what to do before it takes effect.
The Reserve Bank of Australia (RBA) has confirmed a three-part reform package taking effect from 1 October 2026.
From that date, businesses cannot add any surcharge, whether a percentage or a flat fee, for payments made using eftpos, Mastercard, Visa, or related networks. Customers must see and pay one final price at the point of sale, online, or via mobile payment. No add-ons, no checkout surprises.
Interchange fees are the wholesale fees charged between banks each time a customer pays by card. These will be reduced under the new rules, with new caps applying to foreign-issued cards. In practice, this means the underlying cost of accepting card payments should come down for most businesses.
Banks, card schemes, and payment providers will be required to publish clearer information about fees and margins, and to demonstrate how reductions in wholesale fees are being passed through to businesses. This gives you more power to compare providers and negotiate better terms.
The Australian Competition and Consumer Commission is overseeing compliance, alongside guidance from the Australian Small Business and Family Enterprise Ombudsman.
Australians currently pay an estimated $1.6 billion in card surcharges every year. Under the new rules, total merchant payment costs across the economy are expected to fall by around $910 million per year, with small businesses likely to see the largest proportional savings.
For businesses that have been using surcharges to offset acceptance costs, there is an adjustment to make. For those that never applied surcharges, the change simply means lower underlying fees with no impact on how you present pricing to customers.
Either way, this is worth getting in front of now rather than scrambling in September.
Pull up your recent payment statements and get a clear picture of what you are currently paying in card acceptance costs. If surcharges have been part of how you recover those costs, you will need to decide whether to absorb them, adjust your pricing, or a combination of both.
This is not a decision to leave until the last minute, particularly if price changes need to flow through to menus, quote templates, or online checkout systems.
With lower interchange fees coming and greater transparency required, now is a genuinely good time to negotiate. Ask about better merchant service fees, updated pricing plans, and whether your current terminal or payment setup is still the right fit.
Small businesses often pay closer to the current fee caps than larger operators, which means they stand to gain the most from shopping around.
Any surcharge signage, online checkout add-ons, or automatic percentage fees will need to be removed before 1 October 2026. All prices displayed to customers must be all-inclusive from that date.
If your POS system currently applies surcharges automatically, check with your provider about how to turn this off and whether any software updates are needed.
Lower merchant fees will not appear immediately, but most businesses should start to see the benefit flow through during the 2026-27 financial year. Now is a good time to revisit your budget assumptions, particularly if card payments make up a significant portion of your revenue.
Removing surcharges may encourage more customers to pay by card. That is generally a positive for convenience and transaction speed, but it is worth keeping an eye on your total acceptance costs as payment patterns shift.
For businesses that currently add surcharges, this reform simplifies operations and removes a compliance risk. For businesses that never charged surcharges, it levels the playing field.
Over time, the changes should also encourage more competition among payment providers, which could lead to better products and lower fees across the market.
There may be some secondary adjustments, such as banks reviewing rewards programs in response to lower interchange fees. But the combined oversight of the RBA and Australian Competition and Consumer Commission (ACCC) is aimed at making sure cost savings flow through fairly rather than being absorbed by the payments industry.
The surcharge ban is a practical, consumer-friendly reform that most businesses will adapt to without major disruption. But adaptation does require preparation, and the businesses that start reviewing their payment arrangements now will be in a much stronger position than those that leave it until October.
Not sure how the surcharge ban affects your margins or what to ask your payment provider? Our team can help you model the changes, review your pricing, and make sure everything is in order well before the October deadline.
Trekk Advisory provides accountant-led tax, bookkeeping, and advisory services for Australian business owners. This article is general in nature and does not constitute personal advice. Please speak with a qualified adviser regarding your specific circumstances.