Card Surcharges Banned from October
From October 1st, 2026, merchants will no longer be able to charge card surcharges on customers who pay by credit or debit card. The move is a result of a review conducted by the Reserve Bank of Australia's (RBA) Payment Systems Board in March this year.
The ban affects all three major card networks: Visa, Mastercard, and eftpos. According to Treasurer Jim Chalmers, around 16% of Australian businesses currently charge card surcharges, with Australians paying a total of $1.6 billion per year.
Yarra Valley Rides director Scott Bennett has chosen to opt out of accepting card payments altogether, citing the high fees associated with processing card transactions as unsustainable. 'It's not fair to customers who pay direct deposit or in cash,' he said.
The RBA is advising businesses to incorporate the cost of card fees into their overall pricing rather than adding a separate surcharge. If merchants wish to encourage customers to use alternative payment methods, they can offer discounts instead.