Australia Bans Card Surcharges: What it Means for Businesses and Consumers

From October 1st, businesses in Australia will no longer be allowed to charge card surcharges when customers pay with debit, credit, EFTPOS, or prepaid cards. The Reserve Bank of Australia had previously reviewed and removed surcharging from all designated card networks, including American Express, which is voluntarily joining the change.

This move follows a significant shift in payment methods in Australia. In 2003, Australians mostly paid in cash, but by 2025, cards made up almost three out of four payments. Debit cards are the most popular way to pay, accounting for 49% of all transactions, while credit cards came second at 23%.

Businesses will have two options: absorb the costs themselves or build them into slightly higher prices. This change is more likely to be noticeable in smaller businesses and those that currently apply card surcharges, such as Aldi supermarkets, local grocers, cafes, restaurants, some tradespeople, and online stores.

The Reserve Bank estimates that if all card surcharge costs were built into prices, it could add about 0.1% to measured inflation. This change will reflect what most customers want: no surprises at the checkout.