Payment Radar
Australia's Ban on Debit and Credit Card Surcharges Takes Effect
Australia's ban on debit and credit card surcharges takes effect on October 1, 2026, barring businesses from adding surcharges to Mastercard, Visa, and EFTPOS transactions.
Payment RadarOriginal source: Payments Journal · linked publisher media; native reuse rights require confirmation 
What changed
Australia is banning debit and credit card surcharges on October 1, 2026. Businesses can no longer add extra fees to Mastercard, Visa, and EFTPOS transactions. To offset the loss of surcharge revenue, the Reserve Bank of Australia (RBA) is lowering interchange fee caps. The wholesale fee paid by a merchant’s acquirer to the cardholder’s issuing bank on each card transaction, set by the card network, will drop from 0.8% to 0.3% for domestic consumer credit cards and from 0.2% to 0.16% for debit cards. The RBA estimates these changes will save businesses roughly $910 million annually. However, merchants may need to absorb card acceptance costs, potentially leading to higher item prices, and lower interchange fees could impact card issuer rewards programs.
Why a business should care
The ban on card surcharges and lower interchange fees directly affect merchants’ costs and pricing strategies. If you cannot charge customers extra for paying by card, you may need to adjust your pricing to absorb card acceptance costs. This could lead to higher item prices or reduced rewards programs.
Who it affects
Merchants in Australia, particularly small businesses, and consumers.
What to consider doing
Pull your current payment processing statements to identify your average card acceptance costs and model how a 0.3% to 0.8% drop in interchange fees impacts your net revenue.
Uncertainty and risks
Merchants may need to absorb card acceptance costs, potentially leading to higher item prices, and lower interchange fees could impact card issuer rewards programs. The RBA estimates these changes will save businesses roughly $910 million annually, but the actual impact on individual businesses may vary. There is also uncertainty around how card issuers will adjust their rewards programs in response to lower interchange fees.
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