Card Surcharges Banned in Australia: What It Means for Consumers and Businesses

Australia is introducing new rules to eliminate card surcharges on major networks from October 1st, 2026. This means that businesses will no longer be able to add an extra percentage when customers pay by Visa, Mastercard, or EFTPOS. American Express and UnionPay will also drop surcharges on the same date, with PayPal following suit on October 5th.

The Reserve Bank of Australia expects consumers to save around $1.6 billion per year in surcharge fees, while businesses are expected to save about $200 million annually. However, the major banks have already started resetting their products, introducing higher annual fees and weaker rewards programs.

Some businesses may raise prices across the board or push customers toward bank transfer or cash payments. A swim school owner estimates that families will pay an extra $1 per lesson if they cannot switch off cards. Hospitality groups are considering menu increases, dropping certain card types, or going cash-only.