Last updated: 24 August 2026
Card surcharges for Visa, Mastercard and EFTPOS payments will soon be banned. Here’s what you need to know and how to prepare your business before the changes come into effect.
Paying by card is a popular and convenient way for Australians to buy goods and services from a range of businesses, online and in person. At the moment, businesses can charge a surcharge or merchant fee for payments made by card, as long as the surcharge is:
This is set to change from 1 October 2026.
Here’s your guide to what’s changing and how to prepare for these changes in business.
In March 2026, the Reserve Bank of Australia announced changes to the surcharge rules for prepaid, debit and credit cards from certain card networks as well as the lowering of interchange fees.
As a result of these changes, your business will not be able to charge a surcharge for Visa, Mastercard or EFTPOS payments from 1 October 2026 onwards.
While not part of the original changes from the RBA, American Express will voluntarily change its merchant rules. This means businesses will no longer be able to apply a surcharge to payments from American Express cards from 1 October 2026.
If you accept PayPal payments for your products or services, the surcharge or merchant fee won’t be impacted. Just make sure the fee you’re passing on isn’t higher than your actual processing costs for these types of payments.
As a consequence of the lowering of interchange fee caps, many banks are announcing changes to credit card fees and rewards programs. To ensure you are getting the best deal, take the time to review and compare the fees and terms and conditions of your banking products.
The changes from 1 October 2026 will only impact surcharges related to card payments. If you have other surcharges in your business, such as weekend or public holiday surcharges, these won’t be affected. Always make sure any surcharges are clearly communicated to your customers.
As a business owner, you will still need to pay merchant fees (for example, to your bank) for the ability to accept payments by Visa, Mastercard and EFTPOS.
While you can’t pass these costs on as a surcharge or credit card fee, you do have some options. You could:
These options all present different potential risks and opportunities – so you need to find the right balance for your business. For example, customers might decide not to make smaller purchases at all if there is a minimum transaction amount, or they might start to explore other alternatives if your products cost more than they used to. On the other hand, absorbing the cost of card payments could impact your business margins.
Whichever option you choose, communicating with your customers is important. For example, you might need extra signage at your point of sale if you introduce a minimum transaction amount. If you decide to adjust your prices, here are some tips about how to tell your customers about your price rise.
Don’t be tempted to keep the card surcharge under another name such as handling fee, processing fee or admin fee. Under Australian Consumer Law, this could be considered misleading conduct, and your business could face a penalty.
To keep your bottom line as healthy as possible through changing conditions, such as these changes to card payment surcharges, you might like to explore these SBDC tools and resources:
To learn more about how to manage rising costs in your business, read our Coping with inflation article.
