This represents one of the most significant updates to Australia’s payments landscape in years and will have a direct impact on businesses and consumers.
Why this matters
Australians pay an estimated $1.6 billion in card surcharges every year. At the same time, businesses collectively bear even higher card-acceptance costs behind the scenes. Under the new rules, total merchant payment costs are expected to fall by around $910 million per year, with small businesses likely to see the largest percentage savings.
For many businesses this will mean simpler pricing, fewer compliance headaches and potentially better margins — but it also means some preparation is needed.
What’s changing?
The RBA’s reform package has three key components:
1. Surcharges banned
From 1 October 2026, businesses cannot add any surcharge — percentage or flat fee — for payments made using eftpos, Mastercard, Visa or related networks. Customers must see and pay one final price, whether they purchase online, at the counter, or via mobile payment.
2. Lower interchange fees
Interchange fees (the wholesale fees charged between banks when a customer pays by card) will be reduced, with new caps for foreign-issued cards. This should directly lower the cost that a business needs to pay to accept card payments.
3. Greater transparency
Banks, card schemes and payment providers must publish clearer information about fees and margins.
They must also demonstrate how reductions in wholesale fees are being passed through to retailers. This gives businesses more power to compare providers and negotiate.
These changes are supported by oversight from the Australian Competition and Consumer Commission (ACCC) and guidance from the Australian Small Business and Family Enterprise Ombudsman.
What your business should do now
1. Review your merchant fees
Look at your recent statements and determine:
- How much you currently pay in card-acceptance fees; and
- Whether you have been relying on surcharges to offset part of those costs.
If surcharges are part of your pricing strategy, you may need to adjust prices to maintain margins, where commercially appropriate.
2. Speak to your payment provider
With lower interchange fees coming and more transparency required, it’s a good time to negotiate:
- Better merchant service fees
- Updated pricing plans
- POS or terminal upgrades
Small businesses often pay closer to the current fee caps, so they stand to gain the most.
3. Update your pricing and POS systems
You’ll need to remove:
- Surcharge signage
- Online checkout surcharges
- Automatic percentage add-ons
All displayed prices must become all-inclusive.
4. Build changes into your cash flow
Lower merchant fees won’t appear immediately, but most businesses should see reduced costs flow through during the 2026–27 financial year. This is a good time to revisit budgets, especially for cafés, retailers, trades and service-based operators that have a high proportion of small card transactions.
5. Watch customer behaviour
Businesses might find that the removal of surcharges encourages more customers to pay by card. Higher card usage is often positive for convenience and transaction speed, but keep an eye on total acceptance costs as patterns shift.
The broader commercial picture
This reform levels the playing field to some extent.
Businesses that never applied surcharges will simply benefit from lower underlying fees. Those that did add a surcharge will enjoy simpler operations, less admin and fewer compliance risks. Over time, the changes should encourage more competition among payment providers, potentially leading to better products and lower fees across the market.
There may be secondary adjustments (for example, banks reviewing rewards programs), but the combined effort of the RBA and ACCC aims to ensure that cost savings are passed through fairly and transparently.
Final thoughts
This is ultimately a practical reform: fewer add-ons at the checkout, simpler pricing for customers, and lower complexity for businesses. Some businesses will see this as an opportunity to improve margins, streamline processes and enhance the customer experience.
We recommend reviewing your payment arrangements in the coming months. Our team can help analyse your current merchant fees, model the likely impact of the changes, and support negotiations with providers.
If you’d like tailored advice on how the end of card surcharges affects your business, please reach out — now is the ideal time to prepare.
