Australia's 2026 card changes: surcharge ban and lower interchange

Part of Fees and rules by country. See the guides for every market we cover.

For years Australian merchants have been allowed to add a surcharge to card payments to recover what the cards cost them. From 1 October 2026 that changes. The Reserve Bank of Australia (RBA) has decided to remove card surcharging on the main networks and to lower the interchange fees that sit behind the cost of cards.

This guide explains what has changed, what it means for a merchant's costs and prices, and what to ask your provider. It is based on the RBA's published conclusions and summaries by banks and law firms. It is general information, not financial or legal advice, and the details should be checked against the RBA's own text.

What did the RBA decide?

The RBA's Payments System Board published its Conclusions Paper on its Review of Merchant Card Payment Costs and Surcharging on 31 March 2026. It concluded that a package of reforms, including removing surcharging, reducing interchange fees and increasing transparency, would be in the public interest.

Because today is after 1 October 2026, the main changes are already in force. If you are still surcharging on the designated networks, check your position urgently with your provider and the RBA's guidance.

What is changing for Australian merchants?

1. Surcharging is removed

The RBA's release describes the ban as covering the designated eftpos, Mastercard and Visa networks. Merchants can no longer add a card surcharge on those payments. Bank guidance for merchants lists the ban as applying to eftpos, Mastercard, Visa, American Express and UnionPay International, while some other summaries say American Express is outside it. The sources disagree, so check the RBA's primary text and your provider's guidance for the cards you accept.

What this means in practice: the "2% card fee" line on a bill or at the till has to go for the covered cards. Businesses will have to recover costs through prices, absorb them or change how they take payments.

2. Lower interchange caps

As reported in explainers, the new caps work out as follows.

These figures come from secondary explainers, so confirm them against the RBA's paper. The direction is clear: consumer credit interchange falls sharply, debit falls slightly and commercial credit stays higher.

3. Transparency and foreign cards

From 1 April 2027, a cap on interchange for foreign-issued cards and certain transparency measures begin. The aim of the transparency measures is to make it easier for merchants to see what they pay and why.

What does it mean for your costs?

The two changes pull in opposite directions for a merchant who used to surcharge.

• Interchange falls. Your cost of accepting consumer credit cards should go down, at least on interchange plus pricing where the saving is passed on automatically.
• Surcharge revenue disappears. If you were recovering your whole card cost from customers, you now carry it, though at a lower level than before.

A worked example

A Sydney cafe takes A$20,000 a month on consumer credit cards and A$30,000 on debit cards. Using the reported caps, and ignoring scheme fees and provider markup, the change in interchange alone is:

On these assumptions interchange falls by A$112.00 a month, about A$1,344 a year. In practice not every credit payment sits at the old cap, because many sat below it, so the real fall is likely to be smaller. The point is the scale: the saving on interchange is real but modest for a small merchant, and it may be smaller than the surcharge revenue that is going away.

Will your fees actually fall?

That depends on your pricing model.

• Interchange plus: interchange is shown separately, so lower caps should appear directly on your statement. Check the interchange lines on your first statement after 1 October 2026.
• Blended or flat rate: the provider sets a single rate based on average costs. Lower interchange reduces the provider's costs, but your rate falls only if the provider chooses to pass it on or you ask. Providers may have committed to pass savings on, so check what yours has said.
• Tiered: the same applies. You see the tier rates, not the real interchange.

See interchange plus, blended and flat rate for how each model presents costs, and interchange fees explained for the background.

What should you ask your provider?

1. Have my rates changed since 1 October 2026, and by how much?
2. If I am on a blended or flat rate, will the lower interchange be passed on to me, and when?
3. Which of my cards are covered by the surcharge ban, including American Express?
4. Can I see interchange, scheme fees and your margin separately?
5. What will change on 1 April 2027 for my account?
6. Do my terminals or gateway need any changes, for example to stop adding a surcharge automatically?

What should you do about surcharging?

If you have been surcharging, you need to:

• Switch it off on the covered networks in your terminals, point-of-sale system and online checkout.
• Update signage and invoices that mention a card fee.
• Decide how to recover the cost: absorb it, raise prices or review your provider and pricing.
• Check the rules for other cards you accept that may not be covered.

Raising prices is the most common choice, but weigh it against competition and customer reaction. A lower effective rate through a better provider is another way to reduce the cost. Our guide to surcharging, cash discounts and dual pricing covers how rules differ between countries.

For consultants

Every Australian merchant with a card machine is in a review window this year. Many surcharged and are now thinking about price rises, and many are on flat rates that may not have moved. Compare their statement from before 1 October with the latest one, work out the effective rate on each and check whether the lower interchange has reached them. A provider that has not passed it on is an easy conversation. The checkmyrates calculator works in AUD and shows interchange, scheme fees and markup separately, so you can show exactly where a saving should appear.

Frequently asked questions

Is card surcharging banned in Australia?

From 1 October 2026, surcharging has been removed on the designated eftpos, Mastercard and Visa networks under the RBA's reforms. Check the RBA's text and your provider for the position on other cards such as American Express.

When did the changes start?

The RBA published its conclusions on 31 March 2026, and most changes took effect on 1 October 2026. A foreign-card interchange cap and certain transparency measures start on 1 April 2027.

Will my merchant fees go down?

On interchange plus pricing, usually yes, as lower interchange appears on your statement. On a blended or flat rate, only if your provider passes the saving on, so ask.

What are the new interchange caps?

As reported in explainers, consumer credit falls from 0.8% to 0.3% and debit and prepaid from 0.2% to 0.16%, with commercial credit unchanged. Confirm against the RBA's paper.

What can I do instead of surcharging?

Raise prices, absorb the cost, or reduce it by comparing providers on the effective rate. Cash discounts and other approaches may be treated differently, so check the rules first.

Where can I find the official details?

On the Reserve Bank of Australia's website, in its media release and Conclusions Paper of 31 March 2026. Banks also publish merchant guidance.

Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.