When did it start?
- Answer
- 1 October 2026
- Source
- RBA
Surcharge ban / In force since 1 Oct 2026
The card surcharge ban, explained
Since 1 October 2026 you cannot add a surcharge when a customer pays by eftpos, Mastercard or Visa, on debit, prepaid or credit cards. The fee now comes out of your margin or goes into your prices. Here is what changed, what is still allowed, and what to do this week.
Every fact on this page checked
At a glance
| Question | Answer | Source |
|---|---|---|
| When did it start? | 1 October 2026 | RBA |
| Which cards? | Debit, prepaid and credit cards on the eftpos, Mastercard and Visa networks, including overseas-issued cards | RBA FAQs |
| American Express, UnionPay, PayPal? | Also no surcharging, by each company's own decision (PayPal from 5 October 2026), not RBA regulation | RBA FAQs |
| Is it a law? | No. The RBA lifted its rule that stopped card networks banning surcharges; eftpos, Mastercard and Visa then banned them in their own rules | RBA FAQs |
| Still allowed? | Weekend and public holiday surcharges, booking fees, service fees, and discounts for a preferred payment method | RBA FAQs |
| Who enforces it? | The card networks. Misleading price displays go to the ACCC or your state consumer agency | RBA FAQs |
Which cards?
- Answer
- Debit, prepaid and credit cards on the eftpos, Mastercard and Visa networks, including overseas-issued cards
- Source
- RBA FAQs
American Express, UnionPay, PayPal?
- Answer
- Also no surcharging, by each company's own decision (PayPal from 5 October 2026), not RBA regulation
- Source
- RBA FAQs
Is it a law?
- Answer
- No. The RBA lifted its rule that stopped card networks banning surcharges; eftpos, Mastercard and Visa then banned them in their own rules
- Source
- RBA FAQs
Still allowed?
- Answer
- Weekend and public holiday surcharges, booking fees, service fees, and discounts for a preferred payment method
- Source
- RBA FAQs
Who enforces it?
- Answer
- The card networks. Misleading price displays go to the ACCC or your state consumer agency
- Source
- RBA FAQs
What changed, and how
The Reserve Bank removed its rule that stopped card networks banning surcharges. eftpos, Mastercard and Visa each then introduced their own "no-surcharge" rules from 1 October 2026, covering credit, debit and prepaid cards, including cards issued overseas. RBA FAQs
That means the ban sits in the card networks' contracts with businesses, not in a law. The RBA has said that if surcharging continues, it could recommend the Government legislate a ban. RBA
American Express, UnionPay and PayPal have also decided to remove surcharging. The RBA does not formally regulate them, and calls these business decisions that may change. RBA FAQs
What you can still do
- Weekend and public holiday surcharges, booking fees and service fees are not affected by the card rules. source
- Discounts for a payment method you prefer, such as cash, are still allowed. source
- Build card costs into your prices. The RBA expects the merchants that surcharged to fold the cost into advertised prices. RBA
- Non-card payments, such as buy now pay later, are not currently covered by RBA surcharge regulation; check with the provider. source
There are no blanket exemptions for business-to-business payments or not-for-profits unless a card network's rules or a law provides one. source
What fell on the same day: card fees
Interchange, the wholesale fee your provider pays the card issuer, was cut on 1 October 2026. The RBA estimates this lowers merchants' card payment costs by around $910 million a year, and expects small merchants, who tend to pay close to the caps, to gain the most. RBA RBA ch. 8
| Card type | Before | From 1 Oct 2026 |
|---|---|---|
| Consumer credit | 0.8% | 0.3% |
| Commercial credit | 0.8% | 0.8% (unchanged) |
| Debit and prepaid | 10c, or 0.20% | 8c, or 0.16% |
Consumer credit
- Before
- 0.8%
- From 1 Oct 2026
- 0.3%
Commercial credit
- Before
- 0.8%
- From 1 Oct 2026
- 0.8% (unchanged)
Debit and prepaid
- Before
- 10c, or 0.20%
- From 1 Oct 2026
- 8c, or 0.16%
Sources: RBA Conclusions Paper, chapter 8 and chapter 3. A cap is a ceiling on the wholesale fee; what you pay depends on your plan and whether your provider passes the cut on.
Most small businesses never surcharged. The RBA says 85% of small merchants did not surcharge, so for most the change is lower fees, not a lost surcharge. Small merchants keep the option of a single "blended" rate plan. What ends is "fee free" plans that relied on automatically surcharging customers. RBA
What to do now
- Turn off automatic surcharges in your EFTPOS terminal, point-of-sale, invoicing and online checkout. Ombudsman
- Remove surcharge wording from menus, websites, booking systems and invoices, unless it is a weekend or public holiday surcharge. Ombudsman
- Work out what card payments cost you, then decide whether to absorb the fee or reprice. Use the repricing calculator with the rate on your statement.
- If you raise prices, do not mislead customers about the reason. Ombudsman
- Talk to your provider and shop around. Ask whether you are on the best plan for your volume. business.gov.au
What is still coming
Three more payment changes follow, and each one helps you check whether you are overpaying.
Card networks and big acquirers publish their fees
Card networks, and acquirers processing over $10 billion a year
First quarterly fee data due, covering July to September 2026. Useful for comparing what your provider charges.
RBA source Checked 17 October 2026
Acquirers report how much of the savings reached merchants
Card acquirers
First quarterly pass-through report due, covering October to December 2026. If your rate did not fall, this is the evidence to re-quote.
RBA source Checked 17 October 2026
Foreign-card interchange cap and new merchant statement details
Card acquirers, and every business that takes card payments
Expect standardised fee details on statements from the first full period after 1 April. A good moment to re-quote your terminal.
RBA source Checked 17 October 2026
The full list, including Payday Super, is on the change calendar.
Common questions
Can I still surcharge American Express?
In practice, no. American Express, UnionPay and PayPal have each decided to remove surcharging (PayPal from 5 October 2026). These are business decisions rather than RBA regulation, so they could change; check with your provider.
Can I still offer a cash discount?
Yes. The RBA says businesses can continue to offer discounts for particular payment methods. You can also build card costs into your overall prices.
Do weekend and public holiday surcharges still apply?
Yes. The card network rules do not apply to weekend surcharges, public holiday surcharges, booking fees or service fees.
Can I just raise my prices instead?
Yes, many businesses will. The RBA expects the merchants who surcharged, about 16% of them, may lift advertised prices. If you do, do not mislead customers about the reason, which the Small Business Ombudsman specifically warns against.
What about invoices I issued before 1 October?
The RBA says that if a card payment is made on or after 1 October 2026, surcharging may no longer be available even if the invoice was issued earlier.
Where do I report a business that still surcharges?
To the card network (eftpos, Mastercard or Visa), which enforces the rule. Report false or misleading price displays to the ACCC or your state or territory consumer agency.
Sources
- RBA media release, 31 March 2026
- RBA Conclusions Paper FAQs
- RBA Conclusions Paper, Executive Summary
- RBA Conclusions Paper, 2. Surcharging
- RBA Conclusions Paper, 3. Interchange Fees
- RBA Conclusions Paper, 8. Impact and Implementation
- Card payment surcharge changes, business.gov.au
- Card surcharging ban, Australian Small Business and Family Enterprise Ombudsman
All opened and checked 17 October 2026. General information only, not legal or financial advice.