Australian businesses have time to prepare for a significant shift in how card payment costs are handled. From 1 October 2026, separate surcharges for major prepaid, debit and credit card payments are expected to be phased out across the main card networks, meaning businesses may need to recover those costs through broader pricing decisions rather than adding a fee at the time of payment.

What is changing?

The change follows the Reserve Bank of Australia’s decision to allow card schemes to prohibit surcharging on designated card networks. Mastercard, Visa and eftpos are expected to apply these rules from 1 October 2026, with American Express also indicating it will remove surcharging from the same date.

Do the current rules still apply?

The existing surcharge rules remain in place until 30 September 2026. During this transition period, businesses should continue checking that any card surcharge is linked to the cost of accepting that payment method and does not exceed what is currently allowed.

Which fees are not affected?

The upcoming change is limited to fees added specifically because a customer chooses to pay by card. Other charges, such as weekend or public holiday surcharges, booking fees, service fees, terminal rental charges or payment processing fees charged by providers, are separate issues and are not automatically removed by the card surcharge changes.

What does this mean for businesses?

Card payment costs will not disappear once surcharging is removed. Businesses that currently pass those costs on separately should decide how they will manage them in future, whether that means reviewing merchant fee arrangements, adjusting overall prices, encouraging lower-cost payment options through compliant discounts or absorbing some costs into normal operating expenses.

What should businesses review now?

• Review merchant fee statements to understand the real cost of accepting card payments.
• Identify where surcharges are applied, including EFTPOS terminals, point-of-sale systems, invoices, online checkouts and payment gateways.
• Speak with payment service providers about how and when surcharging functionality will be changed or disabled.
• Compare payment plans and providers to check whether the business is on a suitable arrangement.
• Model the impact on pricing, margins and customer communications before the new rules begin.

Can businesses offer discounts instead?

Yes. Businesses may still be able to encourage preferred payment methods by offering a discount, rather than applying an extra fee for card use. Any discount approach should be easy for customers to understand and should sit comfortably with broader pricing display obligations.

How should businesses communicate this change to their customers?

Customer updates should focus on clarity. Before the rules change, businesses may need to refresh website payment wording, invoice notes, receipts, signage and staff talking points so customers know when card surcharges will stop and which other non-card-related fees may still apply.

What is the key takeaway for card payment surcharge changes for businesses?

The practical takeaway is to use the lead time wisely. Before 1 October 2026, businesses should:

• Understand their merchant payment costs
• Confirm how their provider will handle surcharge settings
• Update customer-facing payment information 
• Decide how card acceptance costs will be managed once separate surcharges are no longer available.

For further information and insights on card surcharge changes, visit the Reserve Bank of Australia or the Australian Competition & Consumer Commission.