Card Surcharges Banned in Australia

The Reserve Bank of Australia has implemented new rules to prevent businesses from charging card surcharges for eftpos, Mastercard, and Visa debit, prepaid, or credit card payments. From October 1, these extra fees will no longer be added to bills when customers choose to pay by card.

Card surcharging was introduced in 2003 to allow businesses to pass on the cost of accepting card payments to consumers, but the Reserve Bank has concluded that this practice is no longer achieving its intended purpose. With more Australians switching to digital payments and fewer people using cash, the RBA estimates that customers pay around $1.6 billion a year in card surcharges.

The new rules do not apply to other charges that businesses may impose, such as weekend or public holiday surcharges, booking fees, and service fees. However, businesses will still need to absorb the costs of accepting card payments, which may lead some to increase their prices or pass on these costs in other ways.

For credit card rewards programs, the changes may also impact how customers earn points and benefits. With lower interchange fees, banks and card issuers have been reviewing their rewards schemes, which could result in changes to earning structures and available rewards.