RBA Slaps Interchange Cap on Overseas Cards

The Reserve Bank of Australia (RBA) has introduced a new interchange cap for overseas-issued cards, as part of its package to lower the cost of accepting card payments for local businesses. This move aims to address the higher costs associated with cross-border transactions and provide relief to businesses that rely heavily on international customers.

The RBA's Review of Merchant Card Payment Costs and Surcharging, released in March 2026, concluded that foreign-card transactions typically cost merchants more to accept than domestic ones. To mitigate this, the RBA has implemented a dedicated cap on interchange fees for overseas-issued cards, which will be enforced alongside lower maximum interchange fees for consumer credit and debit card payments.

The new cap is expected to benefit businesses with significant international customer bases, such as those in tourist precincts, hotels, tour operators, and online stores with global buyers. The RBA notes that the reforms should help lower payment costs, particularly for small businesses, by capping interchange fees and promoting transparency in fee disclosure.