The End of Card Surcharges in Australia

What businesses need to know about the pricing shift from the RBA

The Australian payment landscape has just undergone one of its most significant changes in decades. From 1 October 2026, the Reserve Bank of Australia (RBA) has ended surcharging on consumer credit, debit and prepaid card transactions across the EFTPOS, Visa and Mastercard networks. Businesses can no longer add extra fees for card payments at the point of sale.

At Law Team, we believe in a preventative approach to regulatory change that keeps our clients ahead of the curve. We help businesses adapt their pricing and legal documentation safely and strategically to protect margins, stay compliant, and maintain client trust.

Key Takeaways

• From 1 October 2026, businesses can no longer surcharge consumer credit, debit or prepaid card payments on the EFTPOS, Visa or Mastercard networks.

• The RBA is also lowering interchange fee caps for domestic transactions from the same date, reducing the wholesale cost businesses pay to process card payments.

• The reforms roll out in four stages over about 18 months, including new fee transparency requirements and, from April 2027, lower caps for foreign-issued cards.

• Reviewing pricing models, terms and conditions, and client agreements is essential to stay compliant and avoid disputes.

What is the 2026 surcharge ban in Australia?

In simple terms, the ban means you can no longer add a surcharge "on top" of your advertised price for card transactions. Payment processing costs must now be built into your overall pricing, so what the customer sees is what they pay. This ends the era of "plus 1.5% card fees" and different prices depending on how someone pays.

The reforms go further than surcharging alone, and roll out in four stages over about 18 months:

1 October 2026: The surcharge ban itself begins. EFTPOS, Mastercard and Visa no longer allow surcharges on credit, debit or prepaid cards, including cards issued overseas. At the same time, the wholesale fees banks charge businesses for accepting domestic card payments are reduced.

30 October 2026: Card networks and major payment providers start publishing their fees publicly, so businesses can compare costs more easily. The RBA will also share this information on its own website.

30 January 2027: Payment providers must start publishing information showing how the lower wholesale fees have flowed through to what businesses actually pay.

1 April 2027: The lower fee caps extend to cards issued overseas, and businesses start receiving clearer, more detailed statements from their payment providers.

Why does the surcharge ban matter for your business?

Many businesses have relied on surcharges to recover merchant terminal fees and transaction overheads. Those costs must now either be absorbed or built into standard pricing. Businesses that don't adjust risk reduced profit margins, pricing inconsistencies, and non-compliance penalties under Australian Consumer Law, enforced by the ACCC.

Businesses can still offer discounts for using a particular payment method, such as cash or PayID. Genuine weekend, public holiday, booking or delivery fees can also continue, provided they're clearly disclosed and don't simply function as a disguised card surcharge.

The RBA has also confirmed that fees a payment provider charges for services like terminal rental or transaction processing aren't affected by the ban, since these are separate from a card surcharge.

It's easy to overlook that it's the payment date that matters, not the invoice date. If you invoice before 1 October 2026 but the customer pays on or after that date, you generally can't apply a surcharge. This includes professional services businesses, like law firms, accountants and medical practices, that often invoice ahead of payment, so it's worth checking your billing and payment link settings now. 

How can businesses strategically optimise for the RBA changes?

Rather than viewing this change as a loss, it's an opportunity to simplify your pricing and strengthen customer trust. Removing hidden add-on fees presents a clear, transparent and professional image to your clients. Lower interchange fee caps also mean accepting card payments should become somewhat cheaper for many small and medium businesses over time.

The right approach depends on your margins, your industry, and how your customers prefer to pay. Some businesses will absorb the cost entirely, others will adjust their prices, and some will do a combination of both.

How can Law Team help businesses prepare?

Navigating regulatory change and updating commercial agreements takes careful legal and operational planning. Our lawyers are available to review your contracts, pricing documentation and client-facing terms, so your business stays compliant and avoids unnecessary disputes.

Get in touch with us to make sure your pricing models and agreements are fully compliant.

This article is general information only and doesn't constitute legal advice. If you'd like advice tailored to your business, get in touch with our team.

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About the Author: Erin Vassallo

Erin Vassallo is the Principal Solicitor and founder of Law Team, a values-led law firm with a strong reputation across New South Wales and Queensland. With over two decades of experience in commercial, construction, and property development law, Erin is a trusted advisor to developers, landowners, and business owners navigating complex projects and legal risk.

Her hands-on experience includes joint ventures, structuring development deals, contract negotiation, risk mitigation, and project governance across residential, commercial, and mixed-use developments. Erin holds qualifications in law, political science, mediation, and disruptive strategy (Harvard Business School) and is the founder of Certified BCorp Law Team, committed to ethical business practices and social impact.

Frequently Asked Questions

• Does this ban apply to credit cards as well?

  Yes. The RBA's framework bans surcharges on both consumer debit and consumer credit card transactions across the EFTPOS, Mastercard and Visa networks from 1 October 2026.

• Are non-card surcharges also banned?

  No. The RBA's reforms specifically target card payment surcharges. Other fees, such as public holiday surcharges, weekend surcharges, or clear booking or service fees, remain permitted under Australian Consumer Law, provided they follow single-pricing and drip-pricing rules.

• Can I be penalised if I haven't updated my pricing?

  Yes. Failing to meet pricing transparency requirements or continuing to apply card surcharges can result in enforcement action and penalties under Australian Consumer Law, overseen by the ACCC.

• Do I need to update my existing client contracts?

  Yes. If your contracts, engagement letters or standard terms still refer to "plus card surcharge fees", those terms are now legally inaccurate and non-compliant. Updating your legal paperwork is essential to avoid client disputes and stay compliant.

• Can I just rename my surcharge as an "admin fee" or "processing fee" instead?

  No. What matters is the substance of the charge, not what it's called. If a fee only applies because a customer chooses to pay by card, relabelling it doesn't take it outside the ban.

• Does the ban apply to business-to-business payments?

  Generally, yes. There's no automatic exemption just because the paying customer is another business. Any exception depends on the specific card network's rules, not simply who's paying the invoice.