Australia Scraps Card Surcharges as New Payment Rules Kick In

Australia has abolished card surcharges, effective October 1, according to the Reserve Bank of Australia's review of retail payments regulation.

The new rules apply to credit, debit, and prepaid cards used in shops, online, or to pay bills, including foreign-issued cards on Visa and Mastercard networks.

Australian Banking Association chief executive Simon Birmingham said the reforms would remove a 'familiar frustration for consumers,' adding that whether it's paying a plumber or buying a coffee, customers will no longer face an extra few cents or dollars for tapping their card.

The Reserve Bank estimates the lower caps on domestic interchange fees will reduce interchange costs by about $660 million a year. New caps for foreign-issued cards will take effect on April 1, 2027.