Australia Bans Card Payment Surcharges From October

Australia is set to ban card payment surcharges from October 1st. The Australian Payments Network and major card networks eftpos, Mastercard, and Visa have launched a public information website detailing the changes.

The new rules will prohibit businesses from adding surcharges to transactions on these three designated networks for in-store, online, and digital payments, including cards used through mobile wallets. The ban covers personal, commercial, corporate, credit, debit, and pre-paid cards.

Surcharges imposed due to payment method will no longer be allowed, but charges that apply regardless of payment method will remain outside the changes. This includes arrangements explicitly permitted under law or regulation, such as taxi fare surcharges regulated by states and territories.

The move follows the Reserve Bank of Australia's review of merchant card payment costs and surcharging, which concluded that surcharging on debit and credit cards should end because it was no longer meeting its original purpose. Industry groups are urging businesses to prepare for the change by reviewing pricing structures, updating checkout displays, and testing payment systems before October 1st.