Sydney Businesses Raise Prices After Card Surcharge Ban Takes Effect

The Reserve Bank of Australia (RBA) recently implemented changes to surcharge rules, banning card surcharges nationwide starting from 1 October 2026. This decision has left many Sydney businesses scrambling to find ways to cover the costs of processing card payments, which are still charged by intermediaries like Visa, Mastercard, and Eftpos.

Under the new rules, businesses can no longer pass on card processing fees to customers. The Australian Competition and Consumer Commission (ACCC) has advised businesses to incorporate these costs into their overall pricing. However, for some, this is easier said than done.

Bhavani Baumann, founder of the Chippendale Hotel’s Mama B’s, has already adjusted her menu prices to account for the lost revenue from card surcharges. She noted that without these adjustments, her business could lose tens of thousands of dollars annually. “Customers know they are worse off than before,” she said.

The Darlinghurst Business Partnership (DBP) has expressed similar concerns, though they are unsure how to proceed. A spokesperson mentioned the difficulty of raising prices in the current economic climate, despite the expected annual cost of thousands of dollars. “It’s very difficult to raise prices in an economy like this,” they stated.