Credit Card Surcharges Are Being Banned — What This Means for Your Business Before October 2026

From 1 October 2026, businesses across Australia will no longer be allowed to charge surcharges on most card payments, including Visa, Mastercard and EFTPOS. In-store or online, debit or credit, the rules apply across the board.

Why Are Card Surcharges Being Removed?

Card surcharges were originally designed to help businesses recover payment processing costs and nudge customers toward cheaper options like cash.

But the way Australians pay has changed, a lot.

Cash is rarely king anymore. Cards are the default. And surcharges, rather than solving a problem, have become a source of confusion and frustration at the checkout.

The Reserve Bank of Australia recognised the system wasn't working as intended and pushed for reform. The goals are straightforward: simpler pricing, greater transparency, and more competition among payment providers.

It's a reasonable outcome. It just requires some adjustment on the business side.

What's Actually Changing from October 2026?

Here's the clear picture:

• Surcharges on Visa, Mastercard and EFTPOS payments are banned

• This covers debit, credit and prepaid cards

• It applies both in-store and online

• The ACCC will be responsible for enforcement

  
  

Alongside the surcharge ban, there are also broader payment system changes coming, including lower caps on interchange fees and more transparent pricing from payment providers. That last part matters, because it creates a better environment for businesses to compare and negotiate.

Does This Mean Your Costs Are Going Down?

Not necessarily, and it's worth being clear-eyed about this.

Card processing costs don't disappear. What changes is who carries them at the point of sale.

Right now, many businesses pass those costs directly to the customer through a surcharge. From October 2026, that's no longer an option for most transactions.

Instead, you'll need to either absorb the cost, adjust your pricing, or find ways to reduce what you're paying to your payment provider.

What Does This Look Like in Practice?

If your business currently adds a 1 to 2% surcharge on card payments, that revenue disappears from your bottom line in October 2026.

The real question is: where does that cost go?

For most businesses, it shifts from a visible fee at checkout into overall pricing. One price. No surprises. Simpler for the customer, but it means your pricing needs to do more of the heavy lifting.

Which Businesses Will Feel This Most?

Surcharging is more common in some industries than others. If your business operates in any of the following, this is a change worth planning for now:

• Hospitality and cafes

• Retail

• Trades and services

• Health and professional services

  
  

The earlier you review your numbers, the more options you have.

What Should You Be Doing Right Now?

October 2026 might feel like a long way off. It isn't, especially if this involves pricing changes, system updates, or a conversation with your accountant.

Here are four practical starting points:

1.        Know your current card processing costs

How much are you paying in merchant fees each month? If you don't have a clear answer, that's the first thing to find out.

2.      Model what removal of the surcharge means for your margins 

Run the numbers. If surcharges currently cover $X per month, what does your pricing need to look like without them?

3.      Update your POS and payment systems 

Many systems apply surcharges automatically. These will need to be switched off before the deadline, so leave time to test and troubleshoot.

4.     Review your payment provider 

With greater fee transparency coming, this is a good moment to shop around. You may find a better deal that offsets some of the impact.

The Bigger Picture

This reform is ultimately about making pricing simpler and fairer for consumers.

One price. No surprise fees at the end of a transaction.

From a customer experience perspective, that's a positive shift. From a business perspective, it means being more intentional about how you price your products and services.

The good news? This isn't a cost blowout. It's a structural change. And with the right preparation, it's very manageable.

If you'd like to talk through what this means for your specific business, we're here to help

Disclaimer: The information in this article is general in nature and should not be relied upon as advice specific to your circumstances.