Australia Ends Card Surcharges Starting October 1 2026

The Reserve Bank of Australia (RBA) has eliminated card surcharges on eftpos, Mastercard, Visa, and American Express transactions, effective October 1, 2026. This change follows the RBA's review of retail payments regulation, which concluded that surcharges were unnecessary and should cease. For shoppers, the most noticeable change is the absence of extra fees when paying with these cards, whether debit, credit, or prepaid. American Express, though not regulated by the RBA, has also chosen to remove surcharges on the same date.

The RBA estimates that consumers previously paid about $1.6 billion annually in card surcharges out of a total of $1.8 billion. The reform has broad public support, with around three-quarters of respondents to the RBA's consultation agreeing that surcharging should stop. However, certain fees such as weekend surcharges, public holiday surcharges, booking fees, and service fees remain unaffected. Taxi surcharging is still regulated by state and territory authorities.

For merchants, the surcharge ban coincides with cuts to interchange fee caps. From October 1, 2026, the consumer credit interchange cap was reduced from 0.8% to 0.3%, and the debit and prepaid cap was lowered from 10 cents or 0.2% to 8 cents or 0.16%. The RBA anticipates that issuer interchange revenue will decrease by approximately $660 million annually. Businesses that previously surcharged will feel the most direct impact, while those that never surcharged will focus on the interchange changes.

The RBA has outlined several upcoming milestones, including the publication of cost-transparency information by card networks and acquirers by October 30, 2026. Enhanced merchant statements will begin on April 1, 2027, along with a new 1.0% cap on foreign-issued card interchange fees. The broader regulatory agenda continues with the RBA's Review of Payments System Regulation, which will address various payment-related issues.